Bitcoin Surges Past $104K After Fed Decision, CME Futures, and More
After the Federal Reserve decided to keep interest rates within their existing range of 4.25% to 4.50%, Bitcoin (BTC) showed amazing resilience on Wednesday, rising above $104,000.
The price movement of the leading cryptocurrency coincides with notable changes in the institutional cryptocurrency scene including new derivatives products and accounting regulation revisions.
Crypto Market Reacts to FOMC
The instant response of the crypto market to the FOMC statement saw BTC/USD momentarily reach an intraday high of $104,782. Velocity.data claims that the upward surge was mostly caused by activity in the futures market; short positions facing $15 million in liquidations within an hour of the announcement. Although the price increase was notable, analysts point out that consistent spot purchasing and the comeback of the Coinbase premium will be required to enable a push above the $105,000 barrier.
CME Announces Options on Bitcoin Friday Futures
Under significant institutional acceptance, the Chicago Mercantile Exchange (CME) announced intentions to introduce options on its Bitcoin Friday futures on February 24, subject to regulatory clearance. Designed at one-50th of 1 BTC, the new product seeks to give more exact solutions for controlling temporary Bitcoin price risk. With almost 775,000 contracts traded since their September introduction, these futures contracts have shown amazing popularity.
Tesla’s Bitcoin Holdings See $600 Million Gain in Q4
The latest quarterly report from Tesla shows how new accounting regulations affect company Bitcoin holdings. Thanks to FASB’s revised rules allowing businesses to mark their Bitcoin holdings to market value, the producer of electric vehicles declared a $600 million gain on its holdings in Q4 2024. This change marks a major departure from past rules allowing businesses only to document losses, not earnings, until assets were sold.
What’s Next for Bitcoin Price?
Although Bitcoin’s historical four-year cycle is clear-cut, some analysts—including Bitwise’s Matt Hougan—suggest that growing institutional acceptance and regulatory clarity could upset this trend. Citing the prospective influence of institutional engagement and potentially strategic reserves, bitwise keeps its $200,000 Bitcoin price projection for the end of 2025.
With more institutional access points and better regulatory clarity, the junction between traditional finance and bitcoin markets keeps accelerating. Together with SEC regulatory changes, the Trump administration’s new executive order on cryptocurrencies has made traditional financial institutions more welcome in the market.
Also read: Bitcoin Price Prediction for 2025: What’s Next After Crossing $100K?
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