Bitcoin Sinks to 6-Month Low as Rate-Cut Hopes Fade
ed funds futures now price in only a 40% chance of a rate cut at the December 10–11 meeting—down sharply from 90% earlier this month.
Quick overview
- The cryptocurrency market is experiencing a slight decline, with Bitcoin down 1.4% to $92,745, marking a six-month low.
- Ethereum has seen a 1.4% increase, trading at $3,111, while altcoins show mixed performance.
- Recent ETF outflows and liquidations have contributed to bearish sentiment, with analysts predicting further downside for Bitcoin and Ethereum.
- The Crypto Fear & Greed Index indicates extreme fear in the market, suggesting low confidence in a short-term rebound.
The cryptocurrency market is slightly lower on Monday. Bitcoin (BTC) is down 1.4% to $92,745, hitting a six-month low—an 11.7% drop compared with last week. Ethereum (ETH), meanwhile, is up 1.4% and trading at $3,111.
Altcoins show a mixed picture: XRP, Tron (TRX), Lido Staked Ether (STETH), and Dogecoin (DOGE) are all higher, while Solana (SOL) and BNB are posting losses.
ETFs and the U.S. Market: Two Drivers Behind the Correction
Over the past 24 hours, the crypto market has seen more than $620 million in liquidations, with 70% coming from long positions in Bitcoin and Ethereum. A key factor behind the pressure is the large net outflows from U.S.-listed crypto ETFs.
Last Thursday alone, ETF outflows reached nearly $870 million, the second-highest daily figure on record. This selling pressure on BTC has weighed on institutional confidence, and analysts now expect demand to remain subdued.
Analysts also warn of further downside: BTC could fall below $90,000, and ETH below $3,000. A break of those levels could signal a more prolonged trend reversal for Bitcoin, while for Ethereum it could trigger a chain reaction of sell-offs toward the $2,700 area.
Traders are also acting cautiously amid fading expectations of future institutional rate cuts. Fed funds futures now price in only a 40% chance of a rate cut at the December 10–11 meeting—down sharply from 90% earlier this month.
At the same time, the Crypto Fear & Greed Index shows extreme fear with a reading of 17, close to its annual low recorded in early March during a peak in the trade-war tensions triggered by Donald Trump. Such levels typically indicate low confidence in a short-term rebound, though some investors view these deep pessimistic phases as buying opportunities.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save