Bitcoin Updates: Diverging Fed Policies Leave Crypto Stuck in Unstable Deadlock
- Fed officials split on December rate cut urgency, with Collins opposing further easing while others cite stagflation risks. - Mixed economic data and 33-day government shutdown delay key metrics, forcing reliance on outdated indicators for policy decisions. - Crypto markets react to Fed uncertainty: Bitcoin dips below $80k amid 70% cut odds, while Ethereum rebounds on institutional buying. - Institutional investors favor liquid Bitcoin ETFs over VC projects, reflecting risk mitigation trends despite $4.6
The possibility of a Federal Reserve rate cut in December has captured the attention of global investors, as policymakers remain split on whether monetary easing is warranted given conflicting economic data. Boston Fed President Susan Collins, who votes on policy decisions, remarked there is "no compelling reason" to lower rates again in December,
This ongoing debate highlights significant rifts within the Federal Open Market Committee (FOMC). Some members maintain that policy is still restrictive,
Digital asset markets, which have historically responded sharply to Fed policy changes, have experienced heightened volatility.
The crypto venture capital sector is also sending mixed signals.
With the December 10 Fed meeting nearing, markets are largely in wait-and-see mode.
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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