Fed Rate Cut Odds Jump to 84% on Thanksgiving as Traders Lean Into December Shift

Bitcoin has bounced back to seven-day highs, currently trading below key support levels, as traders anticipate a potential record Thanksgiving Day close for BTC. Despite recent fluctuations, Bitcoin's price has shown resilience, rebounding from a low of $80,000 to around $87,000 and briefly surpassing $90,000 ahead of the holiday.

Bitcoin has surpassed the $90,000 mark, driven by increasing expectations of a Federal Reserve rate cut in December. This surge follows a period of volatility where Bitcoin's price fluctuated significantly, raising concerns about potential market dynamics such as short squeezes and local bottoms.

The Federal Reserve is poised to end its multi-year balance-sheet reduction, a shift that is beginning to influence discussions around Bitcoin and the broader cryptocurrency market. This transition marks a significant change in monetary policy, with analysts drawing parallels to previous instances when Quantitative Tightening (QT) was halted.

Kevin Hassett, a key advisor to former President Trump and a member of the president's crypto working group, has emerged as a leading candidate to chair the Federal Reserve, according to a Bloomberg report. This potential appointment highlights the intersection of cryptocurrency advocacy and traditional financial governance.

U.S. Treasury Secretary Scott Bessent has highlighted the complexity of the Federal Reserve as a significant factor in the selection of its next chair. This statement underscores the importance of simplifying the central bank's operations in the context of ongoing economic challenges.