Bitcoin Price Eyes $100K as Bullish Flag Takes Shape

The Treasury Department’s decision to inject twice the amount it usually buys back in the bond market also signaled that the Trump administration is committed to pushing asset valuations to higher levels, with or without the Fed’s support.

However, the rally may have hit a temporary ceiling, as analysts once again see high odds that the U.S. central bank will raise rates in September.

Wall Street Positions for the Continuation of BTC’s Rally

Data from FedWatch shows that the probability of a 25 basis point increase during the next FOMC meeting shifted dramatically, jumping from 40% a week ago to 65% at the time of writing.

Inflation is still at a high level, nearly doubling the Fed’s target, and that creates a strong incentive for central bankers to push rates a bit higher.

That said, the fact that the market did not tank shortly after these probabilities changed indicates that the billions of dollars in short liquidations we saw last week may have deterred bears from opening new short positions.