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Bitcoin Updates: Federal Reserve's Mixed Signals Spark Bitcoin's Surge Back to $85K

Bitcoin Updates: Federal Reserve's Mixed Signals Spark Bitcoin's Surge Back to $85K

Bitget-RWA2025/11/21 18:12
By:Bitget-RWA

On November 21, 2025, Bitcoin surged past $85,000, buoyed by renewed speculation that the Federal Reserve might lower interest rates in December, which fueled a rally in riskier assets.

, this uptick came after New York Fed President John Williams made dovish statements, suggesting there was still potential for policy loosening to help balance inflation and employment targets. Previously, Bitcoin had dropped below $81,000 during a widespread selloff triggered by the Fed’s more aggressive stance in October, but Williams’ comments revived expectations for a policy adjustment .

The probability of a 25-basis-point rate reduction at the Fed’s December gathering

on the CME FedWatch tool, up from 39% the previous day. This change reflected traders’ anticipation of a possible policy shift after Williams indicated the central bank might revise its stance "in the near term" without jeopardizing its 2% inflation objective . Bitcoin’s recovery paralleled a 0.35% rise in U.S. stock futures .

Yet, not every Fed official echoed Williams’ outlook. Boston Fed President Susan Collins argued that monetary policy was "appropriately positioned" and voiced doubts about additional rate cuts, stressing the importance of caution in light of persistent economic strength

. Her comments underscored a widening split within the Federal Open Market Committee (FOMC), as some members cautioned that further easing could extend inflationary pressures or unsettle the job market .

The divergent views among Fed leaders highlighted the uncertainty ahead of the December meeting.

-postponed until December 19 due to a government shutdown—added to the confusion. Renowned economist Mohamed El-Erian warned investors not to overinterpret Williams’ statements, could result in a contentious outcome. “Powell still faces a tough challenge persuading the FOMC to avoid a split decision on December 11,” El-Erian posted on X .

The mixed signals from central bank officials reverberated through global financial markets. Gold, often seen as a safe-haven, dropped to $4,061 as hawkish rhetoric and unexpectedly strong employment data diminished the appeal of assets that do not yield interest

. Meanwhile, the S&P 500 and Nasdaq 100 both posted modest gains, regarding a possible shift in Fed policy.

With the December meeting drawing near, investors remain divided between hopes for monetary easing and concerns about continued hawkishness. The Fed’s ability to strike a balance between curbing inflation and supporting economic growth is expected to influence the direction of both stocks and cryptocurrencies in the months ahead

.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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