The bear market in Bitcoin (BTC-USD) is at a potential end. Grayscale Bitcoin ETF (BTC) peaked in the $55 - $55 range in the summer. Selling accelerated from October through late November.
Buyers aggressively bid BTC-USD higher in December, taking advantage of the sell-off. Their buying the dip action is by no means a guarantee for a profitable trade. Gold (GLD) and silver (SLV) are strong contenders as alternative holdings to the U.S. dollar (DXY).
Watch the Federal Reserve
At 2 pm on Wednesday, the Federal Reserve will announce its monetary policy. Stock markets widely expect it to cut interest rates. The bank will cite a weak job market in October and November for the decision. Since it believes inflation from tariffs is transitory, bond markets and the U.S. currency are pricing in the rate cut.
Bitcoin and Ethereum (ETH-USD) are not aggressively priced in for a weaker U.S. dollar. Cryptocurrencies like Dogecoin (DOGE) and LIFE3 are not performing well. Crypto investors prefer Bitcoin first, avoiding the other speculations this time around.
Stocks to Consider
Investors should add Coinbase (COIN) and Futu Holdings (FUTU) to the watchlist. Stronger cryptocurrency trading volumes would boost those platforms. In addition, Robinhood (HOOD) rebounded sharply recently. The stock found support near $100 and closed at $131.95 last week.
