Bitcoin Reacted at 4 Thousand Dollars: US Messages Relieved the Market

In recent days, there has been a promising development for Bitcoin investors following the sharp movements in the market. After John Williams, the President of the New York Federal Reserve, made his statements, the Bitcoin price tested the $81,000 level in the morning and quickly recovered, rising above $84,000.

Williams stated in his assessment on Friday that expectations regarding monetary policies in the United States have changed. This soft message, coming just a few days after the hawkish stance from the U.S. Federal Reserve, caused a sudden movement in the markets. In an interview with the Wall Street Journal, Williams suggested that there could be an adjustment in the policy interest rate in the near term. This situation raised investors' expectations for a possible rate cut in December.

Particularly, according to the CME FedWatch Tool data, the probability of a 25 basis point rate cut climbed from 39 to 70 in just one day. This development provided a brief respite for Bitcoin prices, despite the deep corrections experienced in recent weeks. The pricing of a rate cut in December is being closely monitored in the crypto market.

The sharp declines in the crypto market have been associated with the Federal Reserve signaling monetary tightening in October. However, Williams’ statements contradicted the more severe assessments made just a day earlier by Cleveland Fed President Beth Hammack. This difference has played a role in reshaping investor expectations for the December meeting.

As of the time of writing, the price of Bitcoin is trading at approximately $83,500. However, it has experienced a decline of over 9% in the last 24 hours. These market fluctuations continue to direct investors' attention to upcoming Federal Reserve messages and macroeconomic data. The sustainability of the recovery in Bitcoin prices will depend on the signals provided in the coming days.