Investing.com — Bitcoin experienced a rebound on Thursday, climbing above the $90,000 threshold, driven by mounting expectations that the US Federal Reserve (Fed) will reduce interest rates, which has ignited a fresh wave of investor interest.
The world’s largest cryptocurrency was last trading 4% higher, priced at $91,201.6 as of 08:54 MSK.
Following its dip to $80,000 last Friday—its lowest point since April—the flagship cryptocurrency has shifted direction. This turnaround was significantly bolstered by optimism regarding the possibility of the Fed easing its monetary policy next month.
Fed Rate Cut Expectations Accelerate; Chair Nomination Under Scrutiny
Markets are currently pricing in an approximately 85% chance of a quarter-point rate cut, a steep increase from the 44% probability recorded just a week ago. Rate reductions typically favor “risk assets” such as Bitcoin by increasing liquidity and enhancing the appeal of higher-yielding alternatives.
However, a degree of caution persists. Inflation within the US remains stubborn, and macroeconomic data points have presented a mixed picture. This raises questions about the extent and pace of the Fed’s impending moves—and whether the recent surge represents a short-term bounce or the commencement of a sustained upward trend.
Nonetheless, among those feeling bullish, the potential nomination of Kevin Hassett as the next Fed Chair—who some perceive as leaning toward looser monetary policy—adds fuel to the bullish outlook for Bitcoin and other speculative assets.
Access the latest market insights and analysis on pivotal events by visiting InvestingPro—claim your 60% discount today.
Third-party advertisement – an offer or recommendation from Investing.com is not implied. See details here or close the ad.
Naver Financial to Acquire Upbit Operator for $10 Billion
Naver Financial, the payments arm of South Korean tech behemoth Naver Corp (KS:035420), has agreed to purchase Dunamu, the firm operating the major crypto exchange Upbit, in a transaction valued around $10 billion.
The acquisition will be executed via a share swap, which will result in Dunamu becoming a wholly-owned subsidiary of Naver Financial.
The companies indicated that this integration will marry Naver’s vast digital payments ecosystem with Upbit’s dominant position in South Korea’s crypto trading market.
This development marks one of the most significant consolidations in the nation’s fintech and digital asset space to date, positioning Naver to expand its blockchain-based financial service offerings once regulatory approval is secured.
About the Author
