Is a Year-End Bitcoin Rebound Imminent? Fed Policy Becomes the Key Variable

Bitcoin year-end rally possible… Fed rate cut a key variable

Bitcoin’s year-end rebound is drawing investors’ anticipation. According to analysis by a compliance platform, improved liquidity and the possibility of Fed rate cuts are viewed as the main factors for the rally. Currently, the probability of a Fed rate cut has risen to 92%.

The platform believes that while the possibility of a Bitcoin “Christmas rally” at year-end still exists, investors are taking a wait-and-see approach for now. In particular, comments from Federal Reserve Chairman Jerome Powell will have a decisive impact on the future direction of the market. An analyst pointed out, “If Chairman Powell makes hawkish comments, the rebound may be limited.”

On the other hand, the correction in Bitcoin in November has been analyzed as being triggered by hawkish remarks from Chairman Powell after the Fed announced it would keep interest rates unchanged. The CEO of an exchange stated, “The main driving force in the current market is macroeconomic factors,” and predicted that if National Economic Council Director Kevin Hassett is appointed as the next Fed Chair, the market may expect more dovish policies.