Bitcoin Price Prediction: Germany Plans to List National Assets, $108,000 Bottom Completed

After the Federal Reserve (FED) lowered the interest rate to 4.00%, the trading price of Bitcoin approached $108,850. Although global Crypto Assets market sentiment has improved and there have been new developments in the political and industrial sectors, Bitcoin still shows a bearish trend. Germany's largest opposition party, the Alternative for Germany (AfD), proposed designating Bitcoin as a national strategic asset and suggested that Germany consider including Bitcoin in its national reserves.

The German Alternative for Germany Party Advocates Bitcoin as a National Asset

The largest opposition party in Germany, the Alternative for Germany (AfD), has proposed recognizing Bitcoin as a national strategic asset. The party urges policymakers to distinguish Bitcoin from other crypto assets within the framework of the EU's Markets in Crypto-Assets Regulation (MiCA). The motion argues that excessive regulation could stifle innovation and undermine Germany's position in the digital finance sector.

The motion calls for maintaining the value-added tax exemption, protecting citizens' asset preservation rights, and retaining a 12-month tax exemption period for Bitcoin gains—this regulation currently benefits long-term holders. Members of the Alternative for Germany (AfD) party also suggested that Germany consider including Bitcoin in its national reserves, similar to the practice of central banks holding gold. This proposal resonates with recent debates in France, where lawmakers are pushing for more favorable policies for Crypto Assets to attract investment and strengthen Europe's blockchain industry.

Investors interpret this move as a sign of increasing acceptance of Bitcoin in the European political arena. The news has boosted optimistic sentiment regarding Bitcoin price predictions, with traders betting that if Berlin supports this motion, broader institutional recognition will follow. If Germany indeed incorporates Bitcoin into its national reserves, it will be a similar move by the second major economy in Europe following France's proposal of 420,000 Bitcoins, potentially triggering a chain reaction among other EU countries.

Germany has significant influence in the crypto assets space. The country is the largest economy in Europe, and its policy choices often set a benchmark for other EU member states. If Germany officially designates Bitcoin as a national asset, it will provide Bitcoin with unprecedented political legitimacy and may encourage other countries to follow suit.

The Federal Reserve (FED) lowers interest rate to 4.00%: Stability in volatility

The Federal Reserve (FED) lowered the interest rate from 4.25% to 4.00%, intensifying short-term volatility, as traders set their sights on $108,900, believing it to be a key support level for Bitcoin. This marks the second rate cut by the Federal Reserve (FED) this year, indicating that monetary policy continues to adjust towards a looser direction.

However, The Federal Reserve (FED) Chairman Powell hinted at a potential pause in interest rate cuts in December during the post-meeting press conference, revealing that FED officials hold “entirely different views” on whether another rate cut should occur in December. This shift in forward guidance has injected uncertainty into the market. Powell clearly stated, “Further rate cuts at the December meeting are not a done deal, far from it.”

The positive news is that Powell confirmed that the Federal Reserve's balance sheet reduction plan (QT) will soon come to an end. This is a substantial benefit for Bitcoin price predictions, as the end of QT means that liquidity tightening will stop, providing a more favorable macro environment for risk assets.

After the Federal Reserve (FED) cut interest rates, the price of Bitcoin experienced short-term fluctuations, initially rising slightly to test resistance near $110,000, followed by a drop to the current level of $108,850. This volatility reflects the market's digestion of mixed signals: the rate cut is positive, but the expectation of a pause in December is negative; the end of QT is positive, but the possibility of real yields remaining high is negative.

TeraWulf Transforms with AI: $500 Million Funding Draws Attention

Bitcoin miner TeraWulf plans to raise $500 million through the issuance of convertible bonds to build a new data center focused on artificial intelligence in Abilene, Texas. The bonds will mature in 2032 and may be further issued for $75 million depending on market demand. This funding will support the company's transition from Bitcoin mining to artificial intelligence infrastructure, leveraging its existing energy and hardware assets to meet the growing demand for GPU computing.

Previously, TeraWulf completed a $3 billion financing from Morgan Stanley, a $1.4 billion guarantee from Google, and reached a $3.7 billion custody agreement with Fluidstack supported by Google. These financings and collaborations demonstrate the strong demand from traditional financial institutions and tech giants for AI infrastructure.

Investors view this move as a strategic diversification effort aimed at enhancing the long-term stability of crypto assets mining companies in a constantly changing market environment. The profitability of Bitcoin mining is influenced by coin prices, electricity costs, and mining difficulty, leading to significant volatility. In contrast, AI computing services offer more stable cash flows and higher profit margins. TeraWulf's transformation represents a strategic adjustment for the entire Bitcoin mining industry.

After the announcement, the price of Bitcoin rose slightly, with traders viewing TeraWulf's AI transformation as a positive signal for broader adjustments in the entire industry. This also suggests that Bitcoin infrastructure companies are looking for new growth points rather than solely relying on mining operations.

Bitcoin Price Prediction: $108,900 Support Determines Direction

(Source: Trading View)

Bitcoin price prediction is bearish, with BTC currently hovering around $108,850, slightly above the key support level of $108,900, which coincides with the 23.6% Fibonacci retracement level. This price level has been a reliable demand area in recent weeks. The price trend indicates a pullback after forming a double top around $117,700, and bulls are currently defending the lower boundary of the ascending channel since the beginning of October.

On the 4-hour chart, several longer lower shadows appear, indicating active buying on dips, even as the 50-day moving average flattens. The Relative Strength Index (RSI) is close to 31, showing that the market is in an oversold state, which is often a precursor to a technical rebound. An RSI below 30 is typically considered an oversold area, and the current reading of 31 is already very close to this critical point.

Bitcoin Price Prediction Key Technical Levels:

Current Price: 108,850 USD

Key Support: $108,900 (23.6% Fibonacci Retracement Level)

Bounce Target: After breaking through 110,700 USD, the target is 112,200 to 114,950 USD.

Downside Target: After falling below $108,900, the target is $106,100 to $103,500.

RSI Level: 31 (Oversold Area)

Trading Strategy: Go long above $109,000, target $114,950

If the daily closing price is above $110,700, it may trigger a rebound, with target price levels ranging from $112,200 to $114,950; if it falls below $108,900, it may drop to between $106,100 and $103,500. Traders tend to go long above $109,000, with a target price of $114,950, as oversold momentum suggests a possible rebound in November.

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