Bitcoin Eyes Rebound as December Fed Cut Odds Soar: Analyst

Core Insights - Bitcoin traders have become more optimistic following a significant increase in the probability of a US Federal Reserve rate cut in December, which nearly doubled within 24 hours [1][3][7] Group 1: Market Reaction - The odds of a December rate cut surged to 69.40% from 39.10% in just one day, driven by dovish comments from New York Fed President John Williams [3][7] - Bitcoin is currently trading around $85,071, reflecting a decline of over 10% in the past week [2] Group 2: Analyst Perspectives - Analysts suggest that the shift in monetary policy expectations could stabilize Bitcoin after its recent downturn, with some expressing bullish sentiments about a potential rebound [2][4][5] - Coinbase Institutional argues that futures markets have mispriced the chances of a rate reduction, indicating a potential underestimation of the situation [6] Group 3: Broader Economic Context - Rate cuts typically encourage investment in assets like Bitcoin as yields on traditional instruments decrease, leading to a favorable macro backdrop for cryptocurrencies [5][7] - Some analysts predict a significant rally in the crypto market, while others caution against overreacting to a single dovish speech [5][7]