TLDR
- Bitcoin trades around $87,500 on Wednesday after dropping to seven-month lows near $80,000 last week
- Market odds for a December Federal Reserve interest rate cut jumped to 80% from 42% in one week
- Speculation grows that Kevin Hassett could replace current Fed chair and support aggressive rate cuts
- CFTC announces new CEO Innovation Council to provide guidance on digital asset regulation and stablecoins
- Most altcoins including Ethereum and XRP remain subdued with Bitcoin still rangebound despite modest recovery
Bitcoin traded at $87,536 on Wednesday morning, showing little movement after last week’s sharp decline to near $80,000. The world’s largest cryptocurrency has recovered modestly but remains in a tight trading range around $88,000.
The market has seen a major shift in expectations for Federal Reserve policy. The odds of a December interest rate cut climbed to 80% from just 42% one week ago. This change followed comments from Federal Reserve officials who signaled support for lowering borrowing costs.
San Francisco Fed president Mary Daly told The Wall Street Journal she supports another rate cut. She expressed concern about the labor market. “It’s vulnerable enough now that the risk is it’ll have a nonlinear change,” Daly said.
New York Fed President John Williams also indicated room for policy adjustment. He stated there is space for further movement in the federal funds rate target range.
The cryptocurrency fell from its October peak above $125,000 to current levels in just over a month. This represents a drawdown of nearly 40%.
Bitcoin Price on CoinGeckoSofter U.S. economic data has helped revive hopes for easier monetary policy. Lower interest rates typically benefit risk assets like cryptocurrencies.
Political Changes Could Impact Fed Policy
Reports suggest Kevin Hassett could succeed the current Federal Reserve chair. Hassett is a close adviser to Donald Trump. Market watchers view him as likely to support aggressive rate cuts if appointed.
This potential leadership change has added momentum to rate cut expectations. Many investors see it as a signal toward easier monetary policy ahead.
Trading remains cautious despite improved rate cut odds. The recent volatility has shaken confidence among crypto investors. Many are waiting for clearer macroeconomic signals before making large bets.
Market analysts note the bitcoin sell-off resulted from multiple factors. These include tariff concerns, a stronger dollar, and forced liquidations. The sharp moves hit an overleveraged market.
CFTC Expands Digital Asset Oversight
The Commodity Futures Trading Commission announced a new CEO Innovation Council on Tuesday. Acting Chair Caroline D. Pham is assembling the council to broaden U.S. oversight of cryptocurrency markets.
The council will provide industry guidance on digital asset regulation. Topics include tokenized collateral, stablecoins, and emerging market structures.
Nominations must be submitted by December 8. Candidates need to include their name, title, affiliation, and proposed focus areas.
Pham described the initiative as critical for the agency to expand digital asset regulation effectively.
Other major cryptocurrencies showed limited movement on Wednesday. Ethereum rose 0.4% to $2,934. XRP fell 2.2% to $2.19. Solana posted slight gains while Cardano and Polygon remained mostly flat.
Bitcoin has stabilized after clearing out excess leverage from the market. Some analysts expect the cryptocurrency to trade between $95,000 and $110,000 by year end if macro conditions improve.
The post Bitcoin (BTC) Price: Trades at $87,500 as Fed Rate Cut Odds Jump to 80% appeared first on Blockonomi.
Source: https://blockonomi.com/bitcoin-btc-price-trades-at-87500-as-fed-rate-cut-odds-jump-to-80/
