Bitcoin Stays Above $92K as Markets Double Down on Fed Rate-Cut Hopes
Ethereum (ETH) rose 2.8% to $3,086, bringing its weekly gain to 12.5%. Altcoins also traded higher, led by Ripple (XRP).
Quick overview
- Optimism over a potential rate cut by the U.S. central bank is driving a mild bullish trend in major cryptocurrencies.
- Bitcoin remains stable at $92,741 after weeks of declines, while Ethereum has gained 12.5% this week.
- Expectations for a 25-basis-point rate cut have surged to 87%, benefiting risk assets like Bitcoin.
- Speculation about Kevin Hassett's potential appointment to a key position adds to the optimism for aggressive rate cuts.
Optimism over a potential rate cut by the U.S. central bank is fueling a mild bullish trend across major cryptocurrencies.
The crypto market remained stable on Friday, with slight gains and some pullbacks among altcoins. Bitcoin (BTC) traded at $92,741, holding its ground after several weeks of steep declines.
Ethereum (ETH) rose 2.8% to $3,086, bringing its weekly gain to 12.5%. Altcoins also traded higher, led by Ripple (XRP) and Lido Staked Ether (STETH), which advanced 2.9% and 2.7%, respectively.
Optimism over a potential Fed rate cut
Expectations for a rate cut at the upcoming Federal Reserve meeting surged notably. According to CME’s FedWatch tool, the probability of a 25-basis-point reduction climbed to roughly 87%, a sharp jump from about 39% just one week earlier.
Risk assets such as Bitcoin tend to benefit from lower interest rates, which improve liquidity conditions and encourage investment flows.
Adding to the optimism is speculation surrounding the possible appointment of Kevin Hassett—a close adviser to U.S. President Donald Trump—to a key position. Several reports suggest he may support more aggressive rate cuts if nominated. Many investors see this as a potential shift toward a more accommodative monetary stance, typically favorable for risk assets like cryptocurrencies.
Even so, caution persists amid uncertainty over how quickly the Fed will act, given stubborn inflation and mixed economic data in the United States.
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