Key Notes
- CoinMarketCap data shows that Bitcoin price has recovered to hit $91,000.
- JPMorgan analysts predicted a 25-basis-point rate cut in December.
- 10X Research's analysts believe that BTC price is more influenced by Fed communication than the rate changes themselves.
Bitcoin BTC $90 925 24h volatility: 4.3% Market cap: $1.81 T Vol. 24h: $75.13 B price has topped $91,000, suggesting a gradual crypto market rebound after an intense series of declines. At the same time, analysts are still concerned that the rally may be short-lived. Their speculations find support in whales’ attitude towards BTC holdings, as these entities are reducing their exposure to the coin.
Traders Expect 25-bps Rate Cut from Fed
According to CoinMarketCap data , Bitcoin is currently trading at $91,404.10 following a 4.51% surge over the last 24 hours.
Despite this rebound, the coin is roughly 20% down over the last 30 days. The flagship cryptocurrency had initially fallen to $81,000 on Nov. 21, making $91,000 a significant recovery level. The market is clearly showing renewed interest, but is still a distance away from BTC’s All-time High (ATH) around $126,000.
It is worth noting that the latest surge in the coin’s value comes as expectations build for a Fed rate cut by December 2025. Analysts from JPMorgan earlier predicted that the interest rate cut could happen in the upcoming FOMC meeting.
This expectation of a 25-basis-point rate cut, per JPMorgan prediction, is a result of the pivot in sentiment from policymakers.
While there is no assurance of the cut, it is worth noting that several US officials have been calling for it to be implemented. On Nov. 24, Federal Reserve Governor Chris Waller noted that his vote would be in favor of a December cut. He added that private hiring data suggests a weakening in the labor market, more quickly than expected,
Fed Communication Impacts Bitcoin Performance
Almost immediately, Boston Fed President Susan Collins opposed his view, stating that inflation is of greater concern than labor weakness. Officials at the central bank are still talking about this matter. Also, 10X Research’s analysts believe that the rate cut itself may not be the catalyst that prices need to push higher.
In their opinion, Fed Chair Jerome Powell’s messaging is more significant than the mechanical act of cutting rates. 10X Research also pointed out Bitcoin’s strong dependence on Fed communication, rather than the rate adjustments themselves. Hence, their reason for stating that a rate cut in December might not prove bullish for Bitcoin’s price.
There is the risk of an increase in sharper market selloff should the Fed decide not to cut rates. Meanwhile, Coinbase has recorded a massive influx of USDC as Bitcoin climbs to $91,000, which is a sign of improved liquidity for a further price push.
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