[Market Update] December rate cut probability nears 70%…Bitcoin recovers to 84,000 dollars

The virtual asset (cryptocurrency) market is showing a short-term rebound. It is analyzed that investor sentiment has recovered as the possibility of a rate cut by the Federal Reserve (the Fed) in December has risen sharply.

As of 10:13 PM on the 21st (KST), according to CoinMarketCap, Bitcoin (BTC) has risen 2.01% in the past hour and is trading at 83,655 dollars. At the same time, Ethereum (ETH) and XRP (XRP) also rose 2.16% and 2.88%, respectively, compared to one hour earlier.

Comments by John Williams, president of the New York Fed, raised expectations of a rate cut, and it is analyzed that investor appetite for risk assets has strengthened as a result.

Earlier, Williams said at a Central Bank of Chile event that progress on inflation has temporarily stalled and emphasized the importance of restoring the long-term 2% target. He estimated the current inflation level at about 2.75%. He added, "Current monetary policy is somewhat restrictive, but the Fed still has room to implement a near-term rate cut," and explained, "We will maintain a balance between the Fed's goals of price stability and maximum employment."

Following Williams' comments, the market immediately raised the probability of a December rate cut. According to the Chicago Mercantile Exchange (CME) FedWatch at the same time, the market sees a 69.7% probability that the Fed will lower the policy rate by 0.25% in December. This is approximately 30.7 percentage points higher than the previous day (39.1%).