Bitcoin experienced a remarkable surge on Wednesday, climbing back above the $92,000 threshold. This marks a notable recovery from its previous dip below $84,000 earlier this month. This upward momentum can be attributed to a renewed appetite for risk, buoyed by expectations of further interest rate reductions by the US Federal Reserve. Currently, markets are anticipating an 89% probability of a 25 basis point rate cut by the Fed next week, with approximately 90 basis points of total easing projected for 2026.
The dovish sentiment has been further strengthened by speculation regarding the potential nomination of White House economic adviser Kevin Hassett as the next Fed chair, known for his advocacy of more rapid rate cuts. Additional support for these gains stems from positive industry news, such as US SEC Chairman Paul Atkins hinting at the introduction of an "innovation exemption" for digital asset companies. Furthermore, Vanguard Group's announcement that exchange-traded funds (ETFs) and mutual funds primarily invested in cryptocurrencies will soon be available for trading on its platform has also contributed to the bullish outlook.
