CME glitch; U.S. dollar on pace for weekly fall; Tokyo CPI - what’s moving markets
Investing.com-- Bitcoin steadied on Friday after rebounding above the $90,000 mark this week, as markets increasingly bet on a near-term interest-rate cut by the Federal Reserve and weighed the implications of a potential leadership change at the central bank.
The world’s largest cryptocurrency last traded largely flat at $91,202.9 by 01:32 ET (06:32 GMT), after briefly sinking to near $80,000 last Friday, its weakest point since April.
Bitcoin was set for a weekly rise of nearly 8% after four straight weeks of declines, helped by institutional inflows.
Fed rate cut bets jump, support Bitcoin’s rebound
The rebound has coincided with a sharp rise in expectations for a rate cut at the Fed’s December meeting. CME Fedwatch tool showed that the probability of a 25-basis-point reduction has surged to roughly 87%, up dramatically from around 39% just a week ago.
Lower interest rates tend to make “risk assets” such as Bitcoin more attractive by loosening liquidity constraints and encouraging investment flows.
Adding to bullish sentiment is growing speculation that Kevin Hassett -- a White House economic adviser -- could be nominated as the next Fed Chair.
Many market participants view him as significantly more dovish than current policymakers, potentially steering the central bank toward a more aggressive easing path.
That possibility appears to reinforce expectations of easier monetary policy, which in turn is boosting appetite for higher-risk assets.
Investors, however, remain cautious. Sticky inflation and mixed economic data in the U.S. have left some questioning how far or fast the Fed will move, raising doubts whether Bitcoin’s rebound marks the start of a sustained uptrend or merely a short-term bounce.
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Crypto price today: altcoins subdued in tight ranges
Most altcoins traded in tight ranges on Friday, similar to Bitcoin’s move.
World no.2 crypto Ethereum fell 0.5% to $3,013.92.
World no. 3 crypto XRP was largely unchanged at $2.21.
Solana edged slightly lower, while Cardano slipped 2.5% and Polygon lost 1.2%.
Among meme tokens, both Dogecoin and $TRUMP fell nearly 3%.