- Bitcoin dropped 3% in the past 24 hours, trading at approximately
$103,222. - Uncertainty over the Federal Reserve’s December interest rate cut has increased, with odds now at 66.9%.
- Traders are focused on the upcoming October CPI report, which could influence risk appetite and crypto prices.
Bitcoin has extended its recent decline, slipping below $103,000 on Tuesday as investors grapple with fading expectations for a Federal Reserve rate cut in December.
The leading cryptocurrency fell as low as $101,477 earlier in the day, down from a recent high above $106,600. This marks a 3% drop over the past 24 hours.
Macro uncertainties weigh on market
The price action comes amid internal conflicts at the Fed and comments from Chair Jerome Powell indicating that a December cut is not guaranteed. The CME FedWatch Tool now shows a 66.9% probability of a 25 basis point cut, down from higher odds last week.
“The macro relief rally faded fast,” said Vincent Liu, CIO at Kronos Research. He pointed to profit-taking and heavy long liquidations after Bitcoin failed to reclaim the $107,000 resistance level.
Other major cryptocurrencies also declined, with Ether down 4.7% to $3,434, XRP falling 5.3% to $2.40, and Solana dropping 8.85% to $154.76.
Inflation data in focus
Traders are now turning their attention to Wednesday’s October Consumer Price Index (CPI) report, which is expected to show year-over-year inflation holding steady at 3%.
A cooler-than-expected print could revive hopes for looser monetary policy, potentially weakening the U.S. dollar and boosting risk assets like Bitcoin. Conversely, hotter inflation could reinforce a hawkish stance, extending the current downturn.
“There is still some uncertainty about whether the CPI data will be released on schedule tomorrow,” noted Tim Sun, Senior Researcher at HashKey Group, in comments to Decrypt. “The October figure will directly determine how traders price in a potential rate cut in December.”
Some market observers remain optimistic about Bitcoin’s longer-term trajectory.
Analysts warn that $100,000 represents the next key psychological support level for Bitcoin. A break below could trigger further liquidations and increased volatility.
Despite the short-term pressures, some market observers remain optimistic about Bitcoin’s longer-term trajectory, citing ongoing institutional adoption and potential policy shifts.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
© Cryptopress. For informational purposes only, not offered as advice of any kind.
