Bitcoin Surges to $94K One Day Ahead of Expected Fed Rate Cut

Bitcoin experienced a sharp rally, reclaiming the $94,000 level and gaining over 4% in 24 hours, moving against the usual trend of selling off during U.S. market openings. This surge, which also lifted Ethereum and crypto stocks, occurred just one day before the Federal Reserve is expected to lower benchmark interest rates by 25 basis points. Analysts suggest the move might indicate seller exhaustion, noting defensive positioning in derivatives markets and a snapback from crowded short positions. Furthermore, the positive Coinbase bitcoin premium and the fact that spot demand, rather than leverage, is fueling the rally suggest renewed U.S. investor interest, potentially bolstered by expectations of looser financial conditions following the Fed's decision.

(Source：CoinDesk)