- Major cryptocurrencies rose after comments in support of a U.S. Federal Reserve rate cut.
- More than 81% of traders expect a policy rate reduction at the next Federal Reserve meeting.
- Significant outflows were recorded from spot Bitcoin and Ethereum ETFs, with BlackRock’s iShares Bitcoin Trust seeing a record $2.35 billion withdrawn in November.
Bitcoin and other leading cryptocurrencies increased in value during early Tuesday trading, as expectations for another interest rate cut by the U.S. Federal Reserve grew. This shift in sentiment followed remarks from Mary Daly, President of the San Francisco Federal Reserve, who expressed support for a rate cut at the next policy meeting scheduled for December 9-10. According to CoinMarketCap data, Bitcoin rose by 0.5% to $87,617.88 and Ethereum climbed 2.5% to $2,906.34. Other digital assets also moved higher, with Dogecoin up 2.5%, Solana gaining 4.4%, and XRP rising over 7.5%.
According to a report from the Wall Street Journal, Mary Daly supported a further reduction in interest rates due to concerns over the U.S. labor market. She said, “On the labor market, I don’t feel as confident we can get ahead of it.” Daly emphasized the labor market’s vulnerability, noting the risk of sudden changes and explaining that inflation risks are now lower than earlier in the year due to muted cost increases from tariffs. Although Daly is not a voting member on policy decisions, her views are generally consistent with those of Federal Reserve Chair Jerome Powell.
According to CME Group’s FedWatch tool, over 81% of traders have already priced in a rate cut at the upcoming Federal Open Market Committee meeting. The probability increased after John Williams, President of the Federal Reserve Bank of New York, indicated that adjustments remain possible. Williams stressed it is necessary to return inflation to the 2% long-term target while protecting employment.
Retail investor sentiment for Bitcoin was considered ‘neutral’ on Stocktwits during this period.
Meanwhile, spot cryptocurrency exchange-traded funds (ETFs) have seen notable outflows in November. The iShares Bitcoin Trust (IBIT), managed by BlackRock, experienced a record $2.35 billion in outflows—more than triple the previous high set in February, as reported by SoSoValue. Total spot Bitcoin ETF outflows in November were over $3.7 billion, while spot Ethereum ETFs lost $1.64 billion in investor funds. However, Bloomberg ETF analyst Eric Balchunas explained that these numbers do not necessarily mean investors are exiting IBIT, noting that short interest—which reflects bets against the fund—has dropped sharply.
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