Bitcoin Price Analysis: BTC Rebounds As December Rate Cut Odds Soar

Bitcoin (BTC) traders are an optimistic lot after the probability of a rate cut by the US Federal Reserve nearly doubled over 24 hours. As a result, the flagship cryptocurrency rebounded, reclaiming $85,000 and moving to its current level of $86,447, a 3% increase over the past 24 hours. 

Bitcoin plunged to an intraday low of $80,524 on Friday, as selling pressure peaked due to concerns over liquidity and macroeconomic factors. However, it has mounted a steady recovery since, crossing $85,000 on Sunday. 

Spot Bitcoin ETFs End Week In Positive Territory 

Spot crypto ETFs ended the week on a positive note, with Bitcoin, Ethereum, and Solana ETFs recording inflows after a bruising week of heavy outflows. Spot Bitcoin ETFs recorded over $238 million in net inflows on Friday after registering heavy outflows on Thursday. BlackRock’s IBIT led the rebound with $108 million in net inflows, supplemented by smaller inflows by BITB, ARKB, and BTCO. Grayscale’s GBTC also registered inflows of over $60 million. The recovery comes after a $903 million outflow on Thursday, the largest in November, and one of the largest single-day outflows since Bitcoin ETFs were launched in January 2024. 

Solo Miner Beats Massive Odds To Mine Block 

A solo Bitcoin miner earned 3,146 BTC, worth $266,000, after solving a block with only a fraction of the computing power typically needed to generate block rewards. The miner, believed to be operating only a hobby-grade machine, mined the block with a hash rate of roughly 1.2 terahashes per second. CKpool creator Con Kolivas announced the news on X while congratulating the miner, and noting how improbable the event was, estimating the odds to be around 1.2 million to one per day at the miner’s reported hash rate. 

The lucky miner received 3.125 BTC from the block subsidy and 0.021 BTC in transaction fees, bringing the total reward to around 3.146 BTC. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has reclaimed $85,000 during the ongoing session as it continues its recovery after plunging to a low of $80,5245 on Friday. The flagship cryptocurrency ultimately settled at $85,068 before dropping 0.45% on Saturday and settling at $84,684. 

However, investor sentiment has turned positive thanks to the dovish stance of New York Fed President John Williams. Williams stated that the central bank could keep interest rates lower in the near term without compromising its fight against inflation, comments that the market interpreted as highly dovish. Bloomberg analyst Joe Weisenthal stated that Williams’s comments were the primary reason the odds of a rate cut increased. The CME FedWatch Tool showed the odds of a rate cut in December rising to 69.40% on Friday, up from 39% a day earlier. 

“These comments from NY Fed President Williams have massively increased the odds of a December rate cut.”

Analyst Ted Pillows stated, 

“The odds of a rate cut next month are now at 69.5%. It has almost doubled today after the NY Fed hinted at a rate cut. I still think that odds will go down as the Fed has no recent data to take a rate cut decision.”

BTC ended the previous weekend in positive territory, rising over 2% and settling at $104,694. The price continued pushing higher on Monday, rising 1.23% to cross $105,000 and settle at $105,979. BTC reached an intraday high of $107,482 on Tuesday. However, it lost momentum as bear market conditions set in. As a result, it fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the price fell 1.33% to $101,639. BTC faced substantial selling pressure and volatility on Thursday. As a result, it slipped below the crucial $100,000 mark, falling to a low of $97,870 before settling at $99,614. Selling pressure intensified on Friday as the price plunged over 5%, falling to a low of $93,951 before settling at $94,503. Despite the overwhelming selling pressure, BTC recovered on Saturday, rising 1.10% to reclaim $95,000 and settling at $95,544. Selling pressure returned on Sunday as BTC fell to a low of $92,943 before settling at $94,183, ultimately dropping 1.42%.

Source: TradingView

Bearish sentiment persisted on Monday as the price fell by over 2% and settled at $92,100. Selling pressure intensified on Tuesday as BTC slipped below $90,000, falling to an intraday low of 89,183. However, it rebounded from this level to reclaim $90,000 and settle at $92,914, ultimately rising nearly 1%. BTC slipped below $90,000 again on Wednesday, falling to a low of $88,483 before settling at $91,461. Selling pressure intensified on Thursday as the price dropped by over 5% and settled at $86,536. The flagship cryptocurrency plunged to an intraday low of $80,524 on Friday as selling pressure intensified. However, it rebounded as market sentiment lifted thanks to dovish comments by Federal Reserve officials. As a result, BTC reclaimed $85,000 and settled at $85,068. Sellers retained control on Saturday as the price fell 0.45% to $84,684. However, the flagship cryptocurrency has rebounded during the ongoing session and is up 1.38% at $85,858.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.