The price of Bitcoin (BTC) recorded increased volatility on Friday, fueled by the CME Group outage. The flagship coin rose as much as $93,000 before falling to hit a daily low of around $90.2k.
Bitcoin Price Hits $100,000 in December, Fueled by Robust Fundamentals
According to the company BTIG, the Bitcoin price is well positioned to rise back towards $100,000 in December. The company noted that BTC price typically bottoms out around November 26 and strengthens toward the end of the year.
The company noted that the Bitcoin price is likely to rise further in the coming weeks after reaching oversold levels. Furthermore, Bitcoin’s daily Relative Strength Index (RSI) fell to an oversold level last week after the extreme sell-off.
Institutional buying pressure supports bullish thesis
BTC’s price is well positioned to remain bullish for the foreseeable future, fueled by renewed demand from institutional investors. The rising demand for Bitcoin by institutional investors is reflected in the Coinbase BTC Premium index, which turned positive on Friday after a prolonged negative period in recent weeks.
Historically, a positive Coinbase BTC Premium index has been associated with a bullish outlook and vice versa.
Source: CoinGlass
The Fed’s upcoming quantitative easing, amid the expected rate cut, signals a new flow of liquidity
Bitcoin’s price is also likely to rise towards $100,000 in December, fueled by the Federal Reserve’s change in monetary policy. Next week the Federal Reserve will launch its quantitative easing (QE).
As such, capital inflows into the Bitcoin market are likely to skyrocket due to the rising global money supply.
Source: Polymarkt
Meanwhile, Polymarket traders are betting on an 87% chance that the Fed will cut rates by 25 basis points in December.
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