What a violent rollercoaster of a day has been for BTC.
The massive volatility in the cryptocurrency markets continues, as bitcoin rebounded by over three grand after plunging below $81,000 to mark a new seven-month low just an hour ago.
The most evident reason behind this immediate increase is related to the US Federal Reserve. The President of the New York branch, John Williams, brought some hope back on the rate cut horizon, indicating that the central bank can indeed lower them “in the near term.”
Although he admitted that inflation progress has “temporarily stalled,” he believes there’s a way for the Fed to lower the rates again soon and also aim for the 2% long-term goal.
“I view monetary policy as being modestly restrictive…Therefore, I still see room for further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals,” he concluded.
His remarks came after reports claiming that the central bank might not lower the rates during its December meeting, due to the delayed economic data for October and November.
The odds on Polymarket also displayed the recent changes, as the no-rate-cut option had skyrocketed to over 60% in the past few days. However, the roles reversed after Williams’ speech, and now the 25 bps cut option is up to 62%.
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