Bitcoin Loses Momentum as Fed Rate-Cut Prospects Dim
Bitcoin bulls are losing momentum this November as uncertainties over Federal Reserve interest rate cuts grow. Recent mixed signals from Fed Chair Jerome Powell have reduced expectations of looser monetary policy. Without a clear path to lower interest rates, Bitcoin’s price is likely to trade sideways rather than follow its typical November rally. Current trading levels near $103,480 remain below the key $116,000 resistance. Bitfinex analysts warn that sustained weakness could erode market sentiment. Some long-term Bitcoin holders have begun selling, pointing to cautious investor behavior. Traders may need to adjust strategies as rate-cut hopes fade and volatility remains subdued.
Bearish
The fading hopes for Federal Reserve rate cuts represent a bearish catalyst for Bitcoin. In the short term, expectations of looser monetary policy have often driven capital inflows into cryptocurrencies. Mixed signals from Fed Chair Jerome Powell have unsettled traders, leading to reduced buying pressure and sideways price action around $103,500. Historically, similar periods of Fed hawkishness, such as in 2018 and late 2022, coincided with stalled Bitcoin rallies and increased volatility. Continued failure to break above key resistance at $116,000 could further weaken market confidence. Long-term holders selling positions may add downward pressure if broader sentiment remains cautious. Over the long term, Bitcoin could recover once rate-cut clarity emerges, but in the absence of clear dovish signals, the market is likely to face subdued momentum and potential downside risks.