TL;DR
- Bitcoin rebounded above $84,000 after Fed’s Williams suggested December rate cut.
- Williams’ dovish comments contrasted with other Fed officials’ hawkish stances.
- Rate cut probability jumped to 70%, boosting both Bitcoin and Nasdaq futures.
Bitcoin regained ground after a session marked by heavy selling, climbing above $84,000 following a low near $81,000. U.S. stock index futures also rose after New York Fed President John Williams signaled a potential rate cut in December.
Williams told the Wall Street Journal: “I still see room for a further near-term adjustment in the federal funds target range to move policy closer to neutral. It is crucial to bring inflation back to our 2 % goal on a sustained basis, without creating undue risks to maximum employment.”
Williams Reopens December Rate Cut
The statement contrasts sharply with the stance of Cleveland Fed President Beth Hammack, who downplayed labor market concerns and focused on inflation and what she sees as an overheated stock market.
Following Williams’ remarks, Bitcoin jumped from roughly $81,000 to above $84,000, trading at $83,500 at press time, still down 9.5 % over 24 hours. Nasdaq 100 futures rose 0.35 %, compared with a near-flat performance before the announcement.
The bond market reacted sharply. The probability of a 25-basis-point cut at the Fed’s December meeting rose to 70 %, up from 39 % the day before, according to the CME FedWatch Tool.
Bitcoin’s rebound comes after weeks of selling pressure that pushed it over 30 % below its all-time high, following the Fed’s unexpectedly hawkish pivot in late October. The combination of dovish comments and renewed rate-cut expectations fueled a partial recovery and temporarily eased volatility across risk assets.
