- Bitcoin slid to six-month lows as shifting rate cut odds rattled traders.
- Delayed economic reports and ETF outflows fueled caution while markets waited for fresh signals.
Bitcoin (BTC) reached a six-month low near $93,000 early Monday as hopes for a December Federal Reserve rate cut faded sharply. Traders saw confidence fall from near certainty earlier in the month to roughly 40%, causing a clear pullback across crypto markets. The Fear and Greed Index touched 10, signaling strong unease among market participants.
The leading cryptocurrency recorded a 10% drop over the past week, extending its losing streak to a third straight week. Fed officials pointed to persistent inflation along with firm hiring trends, creating doubts about any near-term easing. That change removed earlier support that had pushed crypto upward earlier in the year.
Spot ETF outflows added fresh pressure as caution rose after a government shutdown postponed major economic releases. Payroll data shifted to Thursday, leaving trading desks without key information and pushing many to step back until reliable numbers return.
Market Eyes Liquidity and Fed signals
The resumption of government activity created a calmer tone after the unease caused by delayed reports. Regular data releases allowed analysts to guide investors toward fundamental signals rather than guesses formed in the absence of information. That steadier backdrop created room for a more grounded reading of market forces.
On Tuesday, the prospect of a $10 to $20 billion boost from the Federal Reserve drew trader attention. Traders often connect added liquidity with a stronger risk appetite. Crypto markets react quickly when financial conditions loosen, creating hope for near-term support if more funds enter the system.
The FOMC meeting set for Wednesday is viewed as the key event of the week. According to crypto analyst Joe Carlasare, traders appear split on whether December brings a rate cut or no change, adding that softer expectations are already reflected in prices. Carlasare notes that this balance reduces the chance of any sudden shock.
Manufacturing and Inflation Data Drive Sentiment
Manufacturing data due Thursday and inflation expectations set for Friday hold weight in the policy debate. Softer readings could revive talk of rate cuts, while stronger numbers may support a tougher stance from officials. Traders are watching both releases closely since they can shape future guidance.
A trader on X noted that several major events are lining up that could shift market behavior. The community expects a clearer trend once data releases, liquidity conditions, and policy signals point in the same direction. This matters especially for risk-taking traders who are looking for guidance after recent setbacks.
At the time of press, Bitcoin rebounds to $95,612, down 0.74% in the last 24 hours. Market analyst KillaXBT highlights several support levels that guide Bitcoin’s short-term direction. The first key level sits near $94,100. Buyers also showed strong interest in $93,500 range, which matches this year’s opening price. Another zone lies between $89,000 and $91,000.
KillaXBT advised traders to stay away from high leverage because current price swings raise the chance of large wipeouts. A firm break under $85,000 would erase hopes for a bullish rebound and signal a shift in trend. If liquidity builds in lower areas and buyers step back in, a move toward $100,000 can still occur, though the zone around $98,300 may slow that progress.