Odds of December Fed rate cut plunge to 33% as BTC falls below $89K

The probability of a December rate cut by the Federal Open Market Committee (FOMC) has dropped to 33%, down from 67% at the beginning of November, as the cryptocurrency market faces severe declines. This downturn follows Bitcoin's price falling below $89,000 and reflects growing fears of persistent inflation. Prediction markets had forecasted the odds of a cut at around 70% and 67%, but overall investor sentiment remains cautious. Analysts note that Bitcoin has struggled, recently trading below its 365-day moving average and exhibiting a 'death cross' pattern, signaling potential further losses. The Crypto Fear & Greed Index indicates 'extreme fear' among investors, currently rated at 16, just above its yearly low. Market sentiment suggests that if Bitcoin does not recover within the next week, more downward movement could precede any potential rally. This confluence of factors has led to a broader panic in the crypto community, as investors grapple with the implications of falling prices and economic uncertainty.

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