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Bitcoin Bulls Lose Steam as Rate Cut Hopes Fade

Key Takeaways

  • Bitcoin’s typical November gains may not happen this year, as analysts expect prices to move sideways due to economic uncertainty;
  • Mixed messages from the Federal Reserve have clouded expectations of rate cuts, a factor that usually supports crypto markets;
  • Some long-term Bitcoin holders are starting to sell, and confidence may weaken further if prices stay below $116,000.

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Bitcoin Bulls Lose Steam as Rate Cut Hopes Fade

Bitcoin BTC $105,016.38 may not experience its usual November rise this year, as current trends suggest the price could stay flat instead of climbing.

According to a report from Bitfinex, the financial environment is starting to lean toward looser monetary policy.

However, recent statements from the US Federal Reserve have been mixed. Bitfinex $365M said this could lead to a period where Bitcoin’s price holds steady.

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The report also noted that Federal Reserve Chair Jerome Powell has shown some hesitation about a possible interest rate cut at the December meeting.

Lower interest rates are often seen as good for cryptocurrencies. When rates fall, traditional investments like bonds and savings accounts offer lower returns.

This can encourage investors to seek higher returns in cryptocurrencies. However, if the Fed stops or delays further rate cuts, it could cause some concern among crypto traders who have been expecting looser policy.

Bitfinex analysts also noted that Bitcoin buyers hoping for a breakout could lose confidence if the price fails to move above $116,000.

They mentioned that some long-term holders are beginning to sell, which may show reduced optimism. If Bitcoin's price does not recover soon, it could work against those expecting a rebound.

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Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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