Bitcoin traders are more optimistic as the chance of a US Federal Reserve rate cut in December almost doubled in 24 hours, boosting hope for a market in decline. Fed rate-cut odds rose from 39% to 69%, sparking new positivity. Analysts believe easing could drive a strong BTC rebound, but caution against overreacting to one dovish speech. The shift in expectations has sparked speculation of Bitcoin stabilization, with the asset currently trading at around $85,071, down over 10% in the past week, according to CoinMarketCap. The catalyst for optimism came from the CME FedWatch Tool, which showed the odds of a December rate cut jumping to 69.40% on Friday from 39.10% the day before. Analysts attribute the surge to comments from New York Fed President John Williams suggesting rate cuts “in the near term” without compromising inflation targets, signaling dovish moves. Bloomberg analyst Joe Weisenthal believes Williams’ remarks were the primary reason for the odds spike, with social media sentiment among Bitcoiners turning positive. Crypto analyst Moritz wonders if the surge in rate-cut odds will help Bitcoin “find a bottom,” while others express bullish sentiments. Rate cuts typically drive investors to assets like Bitcoin as traditional yields fall, with analysts indicating a favorable macro backdrop for a reversal. Crypto commentator Jesse Eckel sees the setup as “unfathomably bullish,” pointing to the economy’s shift from tightening to easing cycles. Some, like analyst Curb, predict a massive rally, while economist Mohamed El-Erian urges caution, warning against overreaction to a single speech. Coinbase Institutional argues that futures markets have underestimated rate cut chances, citing tariff research, private-sector data, and inflation trackers. Coinbase notes a shift from expecting a 25 bps cut to assuming steady rates due to inflation concerns earlier this quarter. However, the firm highlights tariff effects, which can reduce inflation and increase unemployment, supporting the case for cuts. According to XWIN Research Japan, Bitcoin may remain range-bound between $60,000 and $80,000 if the Federal Reserve maintains interest rates at next month’s FOMC meeting. Analysts anticipate a cautious Fed to keep tight conditions, historically impacting equities and crypto. If no cut occurs, XWIN predicts a muted market until macro clarity emerges.

Read more at Yahoo Finance: Bitcoin Eyes Rebound as December Fed Cut Odds Soar: Analyst