Bitcoin FOMO Resurges at $94K, But Fed Decision May Derail Momentum

Bitcoin's price hit a three-week high this Tuesday, marking a significant rebound that has led traders to experience FOMO (fear of missing out) and anticipate even higher prices, as revealed by blockchain analytics company Santiment.

Key Takeaways

Bitcoin's price rose to $94,625, marking a significant rebound and sparking FOMO among traders.
A dip back to $92,400 suggests market uncertainty, with analysts warning of potential volatility.
The upcoming Federal Reserve meeting may heavily influence Bitcoin's price movements, with 88.6% odds of a 0.25% rate cut.
Concerns about market manipulation have arisen in light of the recent price spike.

Bitcoin FOMO Resurges at $94K, But Fed Decision May Derail Momentum

According to TradingView, Bitcoin climbed to $94,625 on Coinbase during late trading on Tuesday, its highest mark since November 25th. This surge has sparked a wave of social media discussions calling for prices to reach even higher levels.

Traders express optimism, but market movements may differ. Source: Santiment

Despite this optimistic atmosphere, Bitcoin's value has since dipped back down to $92,400 as of this writing, leading analysts to speculate about its future direction. Santiment noted, “Markets often move contrary to the actions of small traders,” suggesting this trend might be occurring following the recent peak.

Impending Volatility as Fed Meeting Approaches

The upward movement of Bitcoin may face challenges with the upcoming Federal Reserve meeting scheduled for Wednesday, caution analysts. The Fed is set to announce its interest rate decision, with CME Group futures indicating an 88.6% chance of a 0.25% rate cut.

“Bitcoin’s rise may be driven by expectations for a rate cut, but it's tough to predict the outcomes following tomorrow’s Fed meeting,” remarked Jeff Mei, Chief Operations Officer at the BTSE exchange.

Related: BTC Set for Potential December Recovery Amid ‘Macro Tailwinds’ and Fed Rate Cuts: Coinbase

He expressed concern that any indecision regarding future rate cuts could negatively impact both Bitcoin and the broader crypto markets. The CME futures prediction market also shows a 21.6% likelihood of another quarter-point rate cut in January.

“Price movements leading into the FOMC meeting are unpredictable, as turbulence is expected,” noted analyst “Sykodelic.”

Concerns Over Market Manipulation in Recent Price Surge

Long-term Bitcoin investor “NoLimit” shared some skepticism with their 53,000 followers on X, suggesting that the recent price movement appeared to be “pure manipulation.” He described the rapid spike to $94,000 as "not looking organic at all."

This investor highlighted issues such as thin order books, which make it easier to influence prices upward, and noted that significant market buy orders occurred within a brief timeframe, followed by a lack of sustained momentum—“just immediate stalling.”

The Bitcoin spike above $94,000 was short-lived. Source: TradingView

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