Bitcoin Fomo Trickles Back At $94k, But Fed Could Spoil The Party

Bitcoin surged to $94,625, its highest in three weeks, as positive social sentiment returned, but comments from the Fed on Wednesday could put it back on shaky ground.

Bitcoin prices surged to a three-week high on Tuesday in a “much-needed rebound” that has caused traders to “FOMO back in and expect higher prices,” according to blockchain analytics firm Santiment.

Bitcoin (BTC) prices jumped to $94,625 on Coinbase in late trading on Tuesday, according to TradingView, its highest level since Nov. 25.

Santiment said this has led to an explosion of social media calls for “higher” and “above” across various platforms.

However, it has already started to retreat from that level, falling back to $92,400 at the time of writing, leaving analysts wondering where it will go next.

“Markets move opposite to the small traders’ behavior,” said Santiment, as this appears to be happening in the hours that followed the monthly high.

The recent surge could be challenged once the Fed meeting takes place on Wednesday, some analysts warn.

The Federal Reserve will announce its interest rate decision on Wednesday, and there is an 88.6% probability of a 0.25% rate cut, according to CME Group futures markets.

“Bitcoin is likely rallying on rate cut expectations, but right now it’s difficult to say what will happen after tomorrow’s Fed meeting,” Jeff Mei, chief operations officer at the BTSE exchange, told Cointelegraph.

Related: BTC poised for December recovery on ‘macro tailwinds,' Fed rate cut: Coinbase

Source: CoinTelegraph