Bitcoin Eyes Rebound as December Fed Cut Odds Soar: Analyst

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optimism among Bitcoin traders.Analysts say a shift from tightening to easing could fuel a strong BTC rebound.Some warn not to overreact, arguing the market may be reading too much into one dovish speech.The shift in expectations has already sparked speculation that a policy pivot could help Bitcoin stabilize after its latest downturn.Bitcoin is trading around $85,071, down more than 10% over the past week, according to CoinMarketCap.The catalyst arrived from the CME FedWatch Tool, which showed the odds of a December rate cut jumping to 69.40% on Friday, up from 39.10% just a day earlier.Analysts pointed to remarks from New York Fed President John Williams, who said the central bank could lower rates “in the near term” without jeopardizing its fight against inflation, language that markets interpreted as strongly dovish.Bloomberg analyst Joe Weisenthal said Williams’ comments were the primary reason the odds “massively increased,” while social media sentiment among Bitcoiners quickly shifted toward optimism.Crypto analyst Moritz wondered whether the surge in rate-cut odds would finally be enough to help Bitcoin “find a bottom.” Others were far more bullish.“Usually this would be bullish,” Mister Crypto wrote, as traders debated whether the Fed’s stance could revive demand for risk assets.Rate cuts typically push investors toward assets like Bitcoin, as yields on traditional instruments fall. Several analysts said the macro backdrop now favors a reversal.Crypto commentator Jesse Eckel called the setup “unfathomably bullish,” pointing to the economy’s transition from a tightening cycle to an easing one.“I don’t know why we keep going lower,” he said. Analyst Curb went further, predicting that crypto “will explode in a massive rally.”However, not everyone is convinced. Veteran economist Mohamed El-Erian urged traders not to get “carried away,” warning that markets may be reading too much into a single speech.In a note on Friday, Coinbase Institutional argued that futures markets have been underestimating the chances of a rate reduction.“We believe the odds for a rate cut are actually mispriced,” the firm wrote, citing new tariff research, private-sector data, and real-time inflation trackers.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,602.99 +64.23 (+0.98%)Dow 3046,245.41 +493.15 (+1.08%)Nasdaq22,273.08 +195.03 (+0.88%)Russell 20002,369.59 +64.48 (+2.80%)VIX23.43 -2.99 (-11.32%)Gold4,079.50 +19.50 (+0.48%)PortfolioSign in to access your portfolioSign inTop gainersBLLN BillionToOne, Inc. 110.00 +14.32 (+14.97%)ADPT Adaptive Biotechnologies Corporation 18.61 +2.29 (+14.03%)KYIV Kyivstar Group Ltd. 12.93 +1.41 (+12.24%)CAVA CAVA Group, Inc. 48.92 +5.33 (+12.23%)HTFL Heartflow, Inc. 30.85 +3.18 (+11.49%)Top losersESTC Elastic N.V. 70.04 -12.04 (-14.67%)VEEV Veeva Systems Inc. 244.06 -26.44 (-9.77%)POST Post Holdings, Inc. 99.42 -7.66 (-7.15%)FRMI Fermi Inc. 14.34 -1.07 (-6.94%)MENS Jyong Biotech Ltd. 30.74 -2.06 (-6.28%)Most activeNVDA NVIDIA Corporation 178.88 -1.76 (-0.97%)OPEN Opendoor Technologies Inc. 6.75 +0.59 (+9.58%)ONDS Ondas Holdings Inc. 6.74 +0.47 (+7.42%)PLUG Plug Power Inc. 1.9800 +0.0900 (+4.76%)TSLA Tesla, Inc. 391.09 -3.96 (-1.00%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 86,036.96 +2,372.91 (+2.84%)ETH-USD Ethereum USD 2,807.61 +96.46 (+3.56%)XRP-USD XRP USD 2.04 +0.14 (+7.14%)SOL-USD Solana USD 129.85 +3.94 (+3.13%)BTC-EUR Bitcoin EUR 74,662.19 +2,059.19 (+2.84%)Top economic events