![[Bitop Review] Bitcoin Holds Above $80,000 Mark and Rebounds, Market Remains Cautious and Fearful Ahead of Thanksgiving Holiday](/api/image-proxy?url=https%3A%2F%2Facademy-public.coinmarketcap.com%2Fsrd-optimized-uploads%2F4432a81b08224b5188264e172b31df89.png)
Market sentiment saw a slight improvement on Friday, buoyed by reports suggesting the Federal Reserve might consider cutting interest rates and that U.S. officials could potentially permit Nvidia to sell AI chips to China. Bitcoin experienced a period of weakness, dropping to a low of $80,600 late Friday evening, marking a 36% decline from its October high. The total cryptocurrency market capitalization has fallen below $3 trillion, with the Fear and Greed Index remaining in territory indicating extreme fear. Over the weekend, Bitcoin began a slow rebound, hovering around $87,000 as of the deadline, and Ethereum (ETH) also saw a modest increase, rising slightly above $2,800.
Interest Rate Cut Expectations and Potential Nvidia Chip Sales to China Boost Market
The past week was characterized by intensified market volatility, with investor unease stemming from uncertainty surrounding the Federal Reserve's plans for interest rate cuts. This uncertainty contributed to the dollar posting its largest weekly gain in a month. Assets that are typically favored by retail momentum traders, including cryptocurrencies and prominent AI stocks, experienced sharp price fluctuations.
John Williams, President of the New York Federal Reserve and a figure closely aligned with Fed Chair Jerome Powell, indicated that there remains scope for monetary policy easing in the near term. This assessment is based on the observed increase in downside risks to employment and a moderation of upside risks to inflation. While traders have increased their wagers on a December rate cut, officials within the Federal Reserve continue to exhibit a divided stance on the necessity of rate reductions. Boston Fed President Susan Collins, for instance, stated that she has not yet made a decision regarding potential actions.
Further contributing to the improved risk sentiment on Wall Street were Bloomberg reports indicating that U.S. officials are engaged in preliminary discussions regarding the possibility of Nvidia being allowed to sell its H200 AI chips to China.
Bitcoin Rebounds After Holding Above $80,000 Mark
Bitcoin's recent trading activity has been subdued, with the cryptocurrency reaching a low point of $80,600 late Friday evening. This represented a 36% decrease from its October high and brought it close to the $74,508 low observed on April's tariff liberation day. Market confidence is currently described as fragile, with the Fear and Greed Index having previously dropped into single digits. In a surprising turn of events, U.S. Bitcoin ETFs recorded net inflows last Friday.
The broader cryptocurrency market capitalization has dipped below the $3 trillion mark, and the Fear and Greed Index continues to signal extreme fear. Bitcoin commenced a gradual recovery over the weekend, trading around the $87,000 level as of the deadline. Ethereum also experienced a slight upward movement, trading just above $2,800.
Thanksgiving Holiday Approaches, Inflation Data to Be Released Soon
This week marks the approach of the Thanksgiving holiday, a period typically associated with lighter trading volumes in the market. However, this could also potentially amplify market volatility. As the U.S. government operations return to normal, several key economic data releases are scheduled for this week, including the Producer Price Index (PPI), Gross Domestic Product (GDP) figures, and the Personal Consumption Expenditures (PCE) price index.