Bitcoin Sees a Lift as Powell Leans Toward Another Possible Rate Cut in December
Bitcoin is showing fresh strength as expectations build around the U.S. Federal Reserve possibly delivering another rate cut before the year wraps up. New analysis suggests Fed Chair Jerome Powell could still guide the committee toward a 25 bps cut in December, even as opinions inside the central bank remain mixed.
Mixed Signals Inside the Fed
According to the latest research, the December FOMC meeting is still wide open, but Powell may push the group in favor of easing again. Several Fed governors, including Stephen Miran, Michelle Bowman, and Christopher Waller, appear open to lowering rates next month.
Others, like St. Louis Fed President Alberto Musalem and Kansas City’s Jeffrey Schmid, seem more comfortable keeping policy unchanged for now.
A handful of Fed voices, including Michael Barr, Philip Jefferson, Austan Goolsbee, and Susan Collins, haven’t shown a strong bias either way. They appear cautiously neutral, slightly tilted toward holding rates in the 3.75–4% range. Meanwhile, Lisa Cook and John Williams are waiting for more data but are reportedly more open to another rate cut than their peers.
The CME FedWatch tool currently shows odds above 75% for a 25 bps cut in December, a dramatic swing from earlier expectations, which jumped from around 33% to 70% after fresh Fed commentary. The shift in sentiment has helped boost Bitcoin, which rebounded along with the wider crypto market.
Nick Timiraos from The Wall Street Journal noted that a rate cut is unlikely unless Powell forces it. Adding to the uncertainty, October’s CPI report won’t be released, and November’s inflation data arrives only after the Fed’s December meeting.
Treasury Secretary Scott Bessent pushed back against recession or inflation worries, saying,
“If you look at the data, that imported goods, the inflation has actually been flat. Inflation is up because of the service economy and services. So that has nothing to do with tariffs.”
Bitcoin Finds Momentum as Market Conditions Shift
Bitcoin has bounced more than 7% from last week’s dip below $81,000, fueled largely by growing expectations of a December rate cut. With support from spot ETF inflows, whale accumulation, and renewed call-option interest, traders are watching whether BTC can make another push toward $90,000.
Analyst Michael van de Poppe highlighted a CME gap around $85,200 and expects a
“Casual red Monday towards that level, before we go back up to $90-96K and find a new base.”
Another analyst, Rekt Capital, pointed out that a strong weekly close above the $86,000 region could help Bitcoin retest $93,000. A rejection at that level, however, might keep BTC trading between $86,000 and $93,000 for a while.
Over the past day, Bitcoin has hovered around $86,700, moving between a low of $85,405 and a high of $88,040. Trading volume is up sharply, more than 45%, signaling renewed activity and interest across the market.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
