BTC News: Jerome Powell Speech Boosts Bitcoin as Traders Weigh Rate Cut Path

Bitcoin rises above $87K as Jerome Powell skips policy talk; traders eye 87% chance of December Fed rate cut.

Bitcoin price moved higher after Federal Reserve Chair Jerome Powell avoided remarks on economic policy during a public appearance. His silence came during the FOMC’s blackout period, leaving markets to focus on recent data and rising expectations of a rate cut in December.

The CME FedWatch Tool now shows the probability of a 25 basis point cut at nearly 87%, as traders remain alert to potential shifts in monetary policy.

Powell Avoids Policy Remarks Ahead of FOMC Decision

During a speech at Stanford University, Jerome Powell confirmed he would not address current economic conditions or monetary policy.

He stated, “Just to be clear, I will not address current economic conditions or monetary policy.” This aligns with the Fed’s communication blackout ahead of its policy meeting scheduled for next week.

Powell’s comments came during an event honoring former U.S. Secretary of State George Shultz. While his remarks were expected to be non-economic, markets still reacted as traders viewed his silence as a positive signal.

The timing also coincides with the Fed’s quantitative tightening (QT) phase potentially ending, fueling speculation around a shift to quantitative easing (QE).

Market participants continue to monitor central bank activity closely, especially after Powell’s October comments suggested uncertainty about a December rate decision. With the blackout in effect, no further guidance is expected until the meeting concludes.

Economic Data Fuels Rate Cut Expectations

New data released on Monday showed continued weakness in the U.S. manufacturing sector. The ISM Manufacturing PMI for November dropped to 48.2, marking the ninth straight month of contraction and falling short of forecasts.

Lower order volumes and increased prices were key drivers of the decline.

This report, combined with softening economic indicators, has increased the probability of a rate cut in December. According to the CME FedWatch Tool, there is now an 87% chance of a 25 basis point reduction at the upcoming meeting.

Markets are also reacting to speculation that White House economic adviser Kevin Hassett may be considered to replace Powell as Fed Chair. Hassett has previously expressed support for deeper rate cuts, which some believe could shape future policy direction if appointed.

Related Reading: Bitcoin Enters Max Value Zone Amid Political Support

Bitcoin Rebounds on Easing Expectations

Bitcoin price rose over 2% in the past 24 hours, reaching a high of $87,325 before stabilizing near $86,970. This move followed Powell’s remarks and growing anticipation of a policy shift by the Fed.

The price also benefited from stronger buying interest amid a broader “buy-the-dip” sentiment.

Derivatives data from CoinGlass showed mixed market positioning. While total open interest in Bitcoin futures rose 0.25% to $57.70 billion, platform-level data was varied. CME futures interest increased slightly, while Binance and Bybit saw declines.

Traders are now watching for confirmation from the FOMC on December 10. Until then, Bitcoin and other risk assets may continue to respond to rate cut odds and evolving central bank policy signals.

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