Federal Reserve uncertainty boosts safe-haven demand, Bitcoin breaks through $97,000 to hit an 8-week high

Source: BlockMedia Original Title: [New York Coin Market/Closing] “Federal Reserve Crisis as a Boon”… Bitcoin Reclaims $97,000, Highlights Alternative Asset Leader Original Link: Bitcoin broke through $97,000, reaching an 8-week high. Amid political uncertainty in the U.S. and higher-than-expected inflation indicators, investors flocked to alternative assets like Bitcoin, resulting in a strong upward trend.

Bitcoin was traded at $97,628, up 3.35% from the previous day. Its market capitalization increased by 3.19% to approximately $1.943 trillion, with trading volume surging 58.9% to $68.4 billion. The total market cap of digital assets was estimated at $3.29 trillion, reflecting an overall bullish market trend.

Major Coin Movements

Supported by Bitcoin’s rise, Ethereum(ETH) also increased by 4.82% from the previous day, trading at $3,366. Ethereum broke through the upper boundary of a technical symmetrical triangle pattern, fueling expectations of surpassing $4,000. Solana(SOL) surged 8.15%, recovering to $147, and meme coin Dogecoin(DOGE) rose 2.71%, regaining the $0.15 level.

Meanwhile, XRP(XRP) declined 0.83% from the previous day, remaining at $2.15. It also fell over 2% on a weekly basis, making it the only major coin showing weakness.

Concerns Over Federal Reserve Independence and Safe-Haven Flows

This upward trend is believed to be linked to the news of a criminal investigation into Federal Reserve(Fed) Chair, prompting investors to shift funds into safe-haven assets. Market analysts explained, “The threat to the independence of the U.S. Federal Reserve and geopolitical uncertainties are simultaneously driving a flight to non-traditional safe assets such as gold, silver, and Bitcoin.”

Rising Inflation Concerns and Institutional Investment Inflows

The U.S. Producer Price Index(PPI) for November increased by 3.0% year-over-year, exceeding market expectations(2.7%). Although this reduces expectations of interest rate cuts, the market has already priced in a hold at the January Federal Open Market Committee(FOMC) meeting, so it did not negatively impact Bitcoin.

Institutional demand is also increasing. Yesterday alone, $753.8 million flowed into Bitcoin spot exchange-traded funds(ETF), supporting the upward momentum.

Expert Outlook

Market analysts predict, “If Bitcoin can turn the $93,500 support level, its opening price last year, into a support zone, a 50% rally similar to April could recur.” They added, “Maintaining above this level on a weekly closing basis will be a key point for a mid- to long-term bullish trend.”

Additionally, they noted, “Geopolitical tensions and monetary policy uncertainties are influencing the market, and volatility is expected to persist for the foreseeable future. In such an environment, risk management and opportunity-seeking strategies should go hand in hand.”

The Alternative Fear & Greed Index, which reflects investor sentiment, remains at 52, indicating a ‘Neutral’ level.