Tag: macroeconomic

The post Bitcoin (BTC) Price: Trades at $87,500 as Fed Rate Cut Odds Jump to 80% appeared com. TLDR Bitcoin trades around $87,500 on Wednesday after dropping to seven-month lows near $80,000 last week Market odds for a December Federal Reserve interest rate cut jumped to 80% from 42% in one week Speculation grows that Kevin Hassett could replace current Fed chair and support aggressive rate cuts CFTC announces new CEO Innovation Council to provide guidance on digital asset regulation and stablecoins Most altcoins including Ethereum and XRP remain subdued with Bitcoin still rangebound despite modest recovery Bitcoin traded at $87,536 on Wednesday morning, showing little movement after last week’s sharp decline to near $80,000. The world’s largest cryptocurrency has recovered modestly but remains in a tight trading range around $88,000. The market has seen a major shift in expectations for Federal Reserve policy. The odds of a December interest rate cut climbed to 80% from just 42% one week ago. This change followed comments from Federal Reserve officials who signaled support for lowering borrowing costs. San Francisco Fed president Mary Daly told The Wall Street Journal she supports another rate cut. She expressed concern about the labor market. “It’s vulnerable enough now that the risk is it’ll have a nonlinear change,” Daly said. New York Fed President John Williams also indicated room for policy adjustment. He stated there is space for further movement in the federal funds rate target range. The cryptocurrency fell from its October peak above $125,000 to current levels in just over a month. This represents a drawdown of nearly 40%. Bitcoin Price on CoinGecko Softer U. S. economic data has helped revive hopes for easier monetary policy. Lower interest rates typically benefit risk assets like cryptocurrencies. Political Changes Could Impact Fed Policy Reports suggest Kevin Hassett could succeed the current Federal Reserve chair. Hassett is a close adviser to Donald Trump. Market watchers view.