President Trump has indicated the next Federal Reserve chairman will pursue significantly lower interest rates as Bitcoin trades through volatile sessions.
Bitcoin News
President Trump has indicated the next Federal Reserve chairman will pursue significantly lower interest rates as Bitcoin trades through volatile sessions.
Bitcoin steadied near $86,600 following sharp price swings Wednesday that saw the cryptocurrency briefly surge toward $90,000 before retreating below $86,000. The asset traded at $86,670 on Thursday, gaining 0.061% over 24 hours.
LVRG Research Director Nick Ruck attributed the heightened volatility to broader risk-off sentiment in global markets, reduced ETF inflows, and deleveraging in derivatives. Increased correlation with equities amid monetary policy uncertainty and macroeconomic pressures added to trading instability.
Thin liquidity conditions amplified price movements as year-end portfolio repositioning replaced fading expectations for a Santa Claus rally. Ruck noted current market dynamics reflect cooling flows and leverage resets rather than seasonal patterns.
Kronos Research CIO Vincent Liu stated Bitcoin sitting around $85,000 to $86,000 represents repricing after a strong run. Markets await real catalysts as fresh liquidity remains absent, making choppy trading the base case until conditions change.
Trump announced Wednesday during his speech that the next FederalReserve chairman will pursue lower interest rates by a significant margin. The president previously expressed preference for benchmark rates at 1% or lower, stating early 2026 will bring the announcement.
CME Group FedWatch Tool assigns 73.4% probability that the Fed maintains a current target range of 3.50% to 3.75% in January. Polymarket prediction platform shows 76% chance that rates hold steady after three consecutive FOMC meeting cuts.
Trump reportedly interviewed Christopher Waller, the pro-crypto Fed Governor advocating lower rates, on Wednesday. Former Fed Governor Kevin Warsh and current National Economic Council Director Kevin Hassett reportedly emerge as leading contenders among five candidates.
Liu emphasized Bitcoin holds above the True Market Mean of around $81,000, stating winter risk rises if that level breaks. The analyst described the current environment as a time-driven grind under heavy overhead supply with leverage already flushed from markets.
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