Bitcoin rallies above 116k on rate cut hopes
Market optimism is boosted by anticipated Fed rate cuts, though long-term yields may limit further gains for Bitcoin.
Bitcoin climbed nearly 4.42% over the past week, trading at $116,031 on Monday as investor optimism grows ahead of an expected US rate cut. Analysts say the rally is driven by technical factors and expectations of a 25bps Fed rate cut.
Edul Patel, CEO of Mudrex, highlighted that Bitcoin is holding above $115,400, with $117,100 acting as key resistance and $113,500 providing strong support.
Other cryptocurrencies are showing mixed trends, with Solana breaking out at $242 and potentially reaching $261 if buying momentum continues, while Ethereum consolidates around $4,600–$4,700.
The broader crypto market capitalisation stood at roughly $4.06 trillion, with institutional flows via ETH ETFs and shrinking exchange reserves tightening sell-side pressure. Analysts warn that high long-term Treasury yields may limit gains despite rising speculative demand ahead of the Fed decision.
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