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Bitcoin price edges higher as traders bet on Fed interest rate cut - YAHOO FINANCE
Bitcoin (BTC-USD) climbed higher on Thursday as optimism returned to digital asset markets ahead of next Wednesday’s Federal Open Market Committee (FOMC) meeting. Traders now assign an 87% probability that the Fed will cut interest rates by 25 basis points, according to the CME FedWatch tool.
The world’s largest cryptocurrency rose by around 1% in the past 24 hours to trade above the $93,200 mark, posting a sharp pullback from lows of around $86,000.
Market attention is now firmly fixed on what is expected to be one of the most politically sensitive Fed decisions in years.
Online betting markets now assign an 85% probability to former White House economist Kevin Hassett becoming the next Fed Chair, and a wave of leadership changes has strengthened expectations that the central bank could turn more dovish heading into 2026.
Amid the improving macro sentiment, analysts at Bitfinex say the crypto market may be entering a stabilisation phase after a period of aggressive deleveraging and forced selling by short-term holders.
“The combination of extreme deleveraging, capitulation among short-term holders, and early signs of seller exhaustion has created the conditions for a stabilisation phase and a relief bounce,” analysts wrote this week.
Ethereum (ETH-USD), the second-largest digital asset, has been even stronger during the rebound, rising 4% in the past 24 hours as investors rotated back into major smart-contract platforms.
QCP Capital CEO Melvin Deng told Bloomberg that bitcoin’s (BTC-USD) latest rebound reflects forced liquidations earlier in the week. He highlighted several areas where the firm is seeing new opportunities and pointed to emerging catalysts that could reshape the crypto landscape in 2026.
Bitcoin ETFs see net outflows
US spot bitcoin (BTC-USD) exchange-traded funds (ETFs) saw $14.9m in net outflows on Wednesday, ending a five-day streak of inflows, according to data from SoSoValue. Despite the broader outflows, BlackRock's (BLK) IBIT continued to draw investor interest, attracting $42.24m in inflows.
Flows across other digital asset ETFs were mixed, with spot ether (ETH-USD) ETFs bringing in $140m, while solana spot ETFs posted $32.19m in net outflows.
Bitcoin’s (BTC-USD) climb has coincided with a renewed downturn in the US dollar index (DXY), with a softer dollar typically supporting risk assets like bitcoin.
