Bitcoin Price Reclaims $91k as JP Morgan Predicts December Fed Rate Cut

The Bitcoin price has regained the $91,000 level after weeks of downward pressure. This comes as expectations build for a Fed rate cut in December. Notably, J.P. Morgan has predicted the cut could happen in the upcoming FOMC meeting.

Bitcoin Price Rebounds as Markets Bet on December Fed Cut

The price of BTC has regained momentum in the market after seeing sharp losses. The coin rose 4.35% over the last 24 hours despite a nearly 20% decline over the past month. This Bitcoin price recovery comes as a result of traders now expecting another Fed rate cut in December due to a shift in sentiment from policymakers.

J.P. Morgan predicted a possible 25-basis-point cut in December. The banking firm had previously said the Fed would hold rates steady until January but now seems to have changed its stance. 

The bank referred to comments from New York Fed President and FOMC Vice Chair John Williams. 

“While the next FOMC meeting remains a close call, we now believe the latest round of Fedspeak tilts the odds toward the Committee deciding to cut rates in two weeks from today,” said J.P. Morgan’s economist Michael Feroli.

Goldman Sachs added that the delayed jobs report from September also supports another rate cut. Many investors had already expected another rate cut even before the new predictions.

Will the Fed Cut Rates as Support Grows?

Many officials have now been calling for the cut to be made. On Monday, Federal Reserve Governor Chris Waller confirmed he would vote in favor of a December cut. Waller said that private hiring data suggests the labor market is weakening more quickly than expected,

Opposing his views, Boston Fed President Susan Collins that inflation remains a greater concern than labor weakness. Officials at the central bank are still talking on this matter.

Meanwhile, the futures markets believes the Fed will lower rates.  According to CME FedWatch data, traders now see an 84.9% chance of a another rate cut in December.

Also, former White House economist Kevin Hassett has been mentioned as the potential next Fed Chair. Advisers to President Donald Trump say he is the top candidate as the selection process gradually concludes.

Hassett has always supported more aggressive rate cuts. It is no surprise he is the President’s top choice because he has also consistently advocated for the same thing.