The price of Bitcoin (BTC) has plummeted in recent hours, reaching $101,680 at the time of writing.
Bitcoin’s decline comes as the market dials back expectations for an interest rate cut by the US Federal Reserve in December, putting downward pressure on the digital currency.
The following TradingView graph shows the decline in BTC this Wednesday, November 12th.
Until a week ago, most analysts expected the Fed to continue its easing cycle with another 25 basis point rate cut in December. but, The odds have changed significantly.
According to CME FedWatch, the market currently has a 65.4% chance that the target rate will be between 3.50% and 3.75%, compared to a 34.6% chance that it will remain in the current range of 3.75% to 4.00%.
Similarly, Polymarket’s prediction market has a 71% chance of a rate cut, but there has been a notable increase in “no change” expectations, which now total 27%.
As the Wall Street Journal reported, there is internal division within the Fed over whether the main risk is sustained inflation or a slowdown in the labor force.
This, as reported by CriptoNoticias, is due to the US government shutdown, whose lifting appears imminent, but the publication of important macroeconomic data has been disrupted, adding to its uncertainty.
Uncertainty in financial direction increases market volatility, and Bitcoin is no exception.
