Bitcoin Bulls Lose Steam as Rate Cut Hopes Fade

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

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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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