Bitcoin price dipping as low as $50,000 ‘cannot be ruled out’ as Fed meeting looms

Core Viewpoint - Bitcoin's price is at risk of dropping to as low as $50,000 due to the upcoming Federal Reserve meeting and current market conditions [1][4]. Group 1: Federal Reserve Impact - The Federal Reserve is expected to announce interest rate decisions on December 10, which could influence liquidity in the markets and affect riskier assets like cryptocurrencies [1]. - A potential interest rate cut could provide liquidity, but market signals indicate Bitcoin may still face downward pressure even if rates are cut [2]. Group 2: Market Sentiment and Price Levels - Current market sentiment is characterized by extreme fear, suggesting a potential for deeper corrective action in Bitcoin's price [2]. - Key price levels identified include $82,000 and $78,000, which could act as demand magnets; however, if these levels do not attract buying interest, a decline into the low $70,000s is possible [4]. - A brief dip below $50,000 cannot be ruled out in a thin liquidity environment [4]. Group 3: Options Market and Future Outlook - Bitcoin options data shows that traders are not overly bearish, with significant put positions at $85,000 for options expiring on December 26 [5]. - Experts indicate that Bitcoin's structural uptrend is broken, and a firm hold above $100,000 is necessary to avoid further declines [6]. - Bloomberg Intelligence strategist Mike McGlone predicts Bitcoin could trade below $84,000 by the end of 2025, indicating potential price challenges ahead [7].