Bitcoin Trades Above $106,000 Today, Here’s Why
Bitcoin jumps above $106,000 this Monday, November 10. A rebound fueled by a series of macroeconomic signals deemed favorable. After a consolidation phase, the queen of cryptocurrencies thus benefits from a new context that awakens speculative appetites.
In brief
- The Fed ends monetary tightening, relaunching liquidity favorable to bitcoin.
- The possible unlocking of the TGA after the shutdown would inject billions into the banking system.
The main driver of bitcoin’s rebound: the Fed
The United States Federal Reserve has just announced the end of quantitative tightening (QT). Starting December 1, the Fed will therefore stop reducing its balance sheet. It will resume reinvesting in matured Treasury bonds. John Williams, president of the New York Fed, even mentions the possibility of new asset purchases. The goal: to ensure money market stability.
Historically, each phase of Fed balance sheet expansion coincides with a bitcoin appreciation that captures part of this liquidity abundance. This link between monetary easing and digital assets remains one of the most closely watched markers by crypto investors.
Another catalyst: the prospect of a political crisis resolution in Washington
The government “shutdown” could end between November 12 and 15, according to prediction markets. This would unlock the Treasury General Account (TGA), automatically injecting billions into commercial banks. Once again, bitcoin would benefit from this increase in reserves.
Added to this are rumors of budget stimulus. Donald Trump indeed mentions a new program of $2000 checks. The housing regulatory authority is considering 50-year loans aimed at reducing monthly payments. These proposals, even theoretical, fuel market optimism about a massive return of easy liquidity.
A window of opportunity for bitcoin bulls?
Despite this momentum, technical indicators show a still cautious market. Reference is especially made to the Fear & Greed index which remains in extreme fear territory. The Put/Call ratio leans on the bullish side.
The key threshold for traders? The 200-day moving average, which bitcoin must surpass to confirm a genuine reversal.
If the political announcements materialize, the climate could change very quickly. Meanwhile, investors will need to watch the dollar curve, long rates, and the Fed calendar closely.
In any case, bitcoin is more than ever establishing itself as the thermometer of monetary tensions and hopes. A dossier to follow very closely…
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.