Bitcoin holds around $92,000 as a ‘hawkish’ Fed cut threatens the crypto rally
Bitcoin (BTC-USD) stood above $92,000 on Tuesday, but strategists grew cautious of the prospects for a year-end crypto rally amid rising expectations of a rate cut from the Federal Reserve.
Markets widely expect the central bank to deliver a 25-basis-point rate reduction at the end of its two-day policy meeting on Wednesday. But both CME FedWatch and Polymarket show increasing investor bets of a pause in January. Investors will be closely analyzing Fed Chair Jerome Powell’s remarks on Wednesday afternoon for clues on the path policymakers will take as they try to balance containing inflation with a cooling labor market.
“If Powell does indeed deliver a hawkish speech, the likelihood of a Santa rally for Bitcoin diminishes,”…
