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Bitcoiners are buzzing! Yesterday’s whispers of a December rate cut from the Fed have become a near-deafening roar, sending social media sentiment soaring into the green.
Could this be the spark that finally ignites Bitcoin’s (BTC) comeback, pulling it from its downward spiral? Crypto circles are buzzing with anticipation.
Bitcoin teeters on the brink. Crypto analyst Moritz wonders if $85,071 a price point bruised by a 10.11% seven-day drop marks a bottom. He took to X on Friday, posing the question: “Let’s see if that’s enough to find a bottom here for now.” Will this level hold, or is Bitcoin destined for a deeper dive? CoinMarketCap data paints a worrying picture.
Friday saw a seismic shift in expectations: bets on a December interest rate cut by the Federal Reserve nearly doubled. The CME FedWatch Tool now clocks the odds at a compelling 69.40%, a dramatic surge from Thursday’s more tepid 39.10%. The market’s mood has clearly shifted, and anticipation is building.
The odds of a US Federal Reserve rate cut jumped 30.30% on Friday. Source: CME Group
The market jolted awake, fueled by whispers of a potential rate cut. New York Fed President John Williams’ surprisingly dovish tone – hinting the Fed could ease rates “in the near term” without igniting inflation – sent shockwaves. Bloomberg’s Joe Weisenthal declared the remarks had “massively increased” the odds of imminent action, igniting a spark of speculation that quickly spread through trading floors.
The setup is looking “unfathomably bullish,” says analyst
But hold on, warns economist Mohamed El-Erian, don’t uncork the champagne just yet. While the broader crypto sphere is already painting the town bullish red – “This is usually liftoff fuel!” exclaimed Mister Crypto in a Friday X post – a dose of reality might be in order.
When the Fed trims rates, watch out – Bitcoin and its crypto cousins tend to party. Suddenly, the safe-but-sleepy returns from bonds and bank deposits lose their luster, and investors start craving a bit more thrill. That’s when the siren song of crypto, with its potential for moonshots, becomes too tempting to resist.
Source: Ted
Crypto analyst Jesse Eckel isn’t just seeing green; he’s seeing a cosmic bull run. Forget the day-to-day jitters. Eckel, peering into the distance with rate cut odds as his telescope, declares, “Step back. Waaaaay back. This setup? Utterly, mind-blowingly bullish.”
“Eckel threw his hands up, a bewildered expression etched on his face. “Lower and lower we go, but why?” he exclaimed, his voice laced with disbelief. “It’s like we’re defying gravity, hurtling from a tightening grip into the welcoming arms of an easing cycle. Makes no sense.” “Eckel’s shoulders slumped. “The market’s a riddle wrapped in an enigma,” he sighed. “We’re supposed to be transitioning towards easier times, loosening the reins. Yet, the descent continues. It’s baffling.” “Defying logic and economic textbooks, the market continued its downward spiral. Eckel, a seasoned analyst, could only shake his head. “This defies all reason,” he muttered. “We’re swinging from austerity to stimulus, yet the needle keeps pointing south. Something’s fundamentally broken.”
Crypto analyst Curb said, “Crypto will explode in a massive rally.”
The odds of a rate cut were previously “mispriced”
Coinbase Institutional bucked the market’s “no cut” consensus on Friday, dropping a contrarian take on X: “Rate cut odds are mispriced. Our research tariff impacts, private market intel, and real-time inflation gauges points to a different reality.”
Related: BTC ETF outflows are ‘tactical rebalancing,’ not institutional flight: Analysts
Wall Street’s crystal ball is getting cloudy. Just weeks ago, futures markets were betting on a rate cut. Now? All bets are off. Coinbase Institutional reports a dramatic U-turn, fueled by a resurgent inflation monster that’s spooking investors and putting the Fed’s rate cut dreams on ice.
“Ironically, slapping tariffs on goods can backfire in the short run. Research suggests these hikes can actuallydeflatethe economy, spiking unemployment and acting like a sudden freeze on consumer spending.”
A shiver runs down the crypto market’s spine. The past week has been a bleak landscape of losses, reflecting a chilling sentiment across the board. The Crypto Fear & Greed Index, a reliable barometer of market psychology, registered a dismal “Extreme Fear” score of 14 on Friday, painting a picture of widespread anxiety gripping investors.
Magazine: Bitcoin whale Metaplanet ‘underwater’ but eyeing more BTC: Asia Express
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