FOMC

Chair

Bitcoin

when

Reserve

Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) stayed below $105,000 on Dec. 18 as markets awaited the next United States Federal Reserve interest rates decision.
<figure>
 <img alt="Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC" src="https://s3.cointelegraph.com/uploads/2024-12/0193daf8-437b-7661-9de7-283223b3a2dd" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
 </figcaption>
</figure>
<h2 id="bitcoin-traders-see-fed-rate-cut-confirmation">Bitcoin traders see Fed rate cut confirmation</h2>
Data from <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="null" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="null" target="null" text="null" title="null">TradingView</a> showed BTC price support retests characterizing the landscape around the day’s Wall Street open.
Due at 2:30 pm Eastern Time, the Federal Open Market Committee (FOMC) announcement on rates will be followed by a speech and press conference by Fed Chair Jerome Powell.
As <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/btc-price-base-case-140k-5-things-bitcoin-this-week" rel="null" target="null" text="null" title="null">Cointelegraph reported</a>, expectations firmly favor the Fed cutting the benchmark rate by 0.25%, per data from CME Group’s <a data-ct-non-breakable="null" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="nofollow noopener" target="_blank" text="null" title="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">FedWatch Tool</a>.
Commenting, trading resource The Kobeissi Letter reiterated concerns about 2025 seeing an upward pivot in Fed policy thanks to resurgent inflation — despite ending the current year with cuts.
“While a 25 basis point rate cut is expected today, odds of rate HIKES returning in 2025 are rising,” it wrote in one of its <a data-ct-non-breakable="null" href="https://x.com/KobeissiLetter/status/1869416077920440538" rel="null" target="null" text="null" title="null">latest posts</a> on X.
Kobeissi referenced prediction service Kalshi displaying 19% odds of the Fed hiking rates.
<figure>
 <img alt="Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC" src="https://s3.cointelegraph.com/uploads/2024-12/0193daf5-51f2-74bc-8b81-76ea8ecbd817" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://kalshi.com/markets/kxfedhike/next-fed-rate-hike" rel="nofollow noopener" target="_blank" text="null" title="https://kalshi.com/markets/kxfedhike/next-fed-rate-hike">Kalshi</a>
 </figcaption>
</figure>
“With inflation back on the rise while the labor market is weakening, the Fed must make a difficult decision. Fulfilling both parts of their dual mandate is becoming increasingly difficult,” it added.&nbsp;
<blockquote>
 “Will the Fed prioritize inflation or the labor market?”
</blockquote>
<figure>
 <img alt="Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC" src="https://s3.cointelegraph.com/uploads/2024-12/0193daf4-044f-7d4c-9aa2-e975d18c56b2" title="">
 <figcaption style="text-align: center;">
 Fed target rate probabilities. Source: CME Group
 </figcaption>
</figure>
<h2 id="btc-price-cools-as-pre-fomc-sellers-dominate">BTC price cools as “pre-FOMC sellers” dominate</h2>
Bitcoin itself saw familiar trading conditions into FOMC, with sell-side pressure reflecting <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-threatens-28k-support-as-pre-fomc-mood-boosts-us-dollar" rel="null" target="null" text="null" title="null">typical risk-off sentiment</a> prior to the event.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-eating-tradfi-lunch-coinbase-revenue-beats-nasdaq" rel="" target="_self" text="null" title="https://cointelegraph.com/news/crypto-eating-tradfi-lunch-coinbase-revenue-beats-nasdaq">Crypto ‘eating TradFi’s lunch’ as $5.75B Coinbase revenue beats Nasdaq</a>
“Market is very much in a dip buying mood,” popular trader Skew <a data-ct-non-breakable="null" href="https://x.com/52kskew/status/1869431473411133553" rel="null" target="null" text="null" title="null">told</a> X followers.
<blockquote>
 “So far throughout today we’re seeing a decrease in long interest as risk is being cut pre - FOMC. The key here though is spot flow which has been dominated by pre-fomc sellers.”
</blockquote>
<figure>
 <img alt="Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC" src="https://s3.cointelegraph.com/uploads/2024-12/0193daf5-fff4-72aa-8b8a-c05aa762ffc8" title="">
 <figcaption style="text-align: center;">
 BTC/USDT futures market data for Binance. Source: Skew/X
 </figcaption>
</figure>
Skew nonetheless suggested that it would not “take much” to flip momentum back in bulls’ favor.
Other market voices noted an <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-cme-gaps-how-to-trade-them" rel="null" target="null" text="null" title="null">unfilled “gap”</a> in CME Group’s Bitcoin futures markets at around $102,000, with fellow trading account MoGambit <a data-ct-non-breakable="null" href="https://x.com/MoGambitHQ/status/1869434655981941192" rel="null" target="null" text="null" title="null">seeing the potential</a> for BTC/USD to fill it during FOMC.
“While history shows us that not every gap gets closed, this one has the potential to be,” GalaxyTrading <a data-ct-non-breakable="null" href="https://x.com/GalaxyTrading_/status/1869303018551923122" rel="null" target="null" text="null" title="null">continued</a> in part of its own post on the topic.
<figure>
 <img alt="Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC" src="https://s3.cointelegraph.com/uploads/2024-12/0193daf6-78cf-7ae1-8810-2b92791027d8" title="">
 <figcaption style="text-align: center;">
 CME Bitcoin futures 1-hour chart with gap highlighted. Source: GalaxyTrading/X
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin in ‘dip-buying mood’ as BTC price skirts $105K into FOMC

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