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Bitcoin Rises to $86.7K Amid Rate Cut Hopes; Grayscale ETFs Approved

Bitcoin Extends Recovery on Fed Cut Hopes as Grayscale Launches XRP and Dogecoin ETFs

  • Bitcoin and other major cryptocurrencies experienced gains amid growing expectations of a U.S. Federal Reserve interest rate cut in December.
  • The New York Stock Exchange approved listings of Grayscale’s Dogecoin and XRP ETFs, set to begin trading on Monday.
  • Traders now estimate a more than 71% probability of a rate cut at the next Federal Open Market Committee meeting, up from 42% a week ago.
  • Retail sentiment on Stocktwits for Bitcoin remains neutral, with some bullish views targeting future highs.

Bitcoin and several other leading cryptocurrencies rose in early Monday trading, supported by optimism over potential monetary policy easing by the U.S. central bank. As of the most recent data, Bitcoin climbed 0.9% to approximately $86,792, Ethereum increased 0.5% to about $2,826, and BNB rose 1.4% to $853. Other notable tokens, including Solana and Dogecoin, saw gains of 0.5% and 2.2%, respectively.

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Last week, Bitcoin briefly dropped to nearly $80,500, but rebounded after Federal Reserve Bank of New York President John Williams stated there is potential for further policy adjustment. Williams said the Federal Reserve aims to return inflation to its 2% target while minimizing risks to employment, noting, “Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals,” as stated here.

More than 71% of traders anticipate a rate cut at the December 9–10 Federal Open Market Committee meeting, according to CME Group’s FedWatch tool. This is a significant increase from approximately 42% the previous week. Market participants are also monitoring upcoming retail inflation data expected on Tuesday.

On the sentiment front, retail traders on Stocktwits were reported as ‘neutral’ in their assessment of Bitcoin. One optimistic trader suggested that Bitcoin’s price could reach $140,000 by early 2026.

In regulatory developments, the New York Stock Exchange has approved the listing of Grayscale’s Dogecoin ETF ($GDOG) and its XRP spot ETF for trading starting Monday. According to analyst Eric Balchunas, these new ETFs add to the recent launch of several XRP products from Bitwise, 21Shares, CoinShares, and Canary Capital. Despite increased investor activity, XRP’s price declined by over 19% in the past month amidst wider market weakness.

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