Bitcoin Breaks $83K as Fed Rate Cut Expectations Soar to 71%

In a dramatic shift of monetary policy expectations, markets are now pricing in a 71% probability of a Federal Reserve interest rate cut in December, according to the CME FedWatch Tool. This represents a significant surge from just 35% earlier in the week. The dovish pivot was catalyzed by remarks from New York Fed President John Williams at a conference in Santiago, where he hinted at potential near-term policy easing. Williams' comments, combined with recent softening labor market data and contained inflation risks, have fundamentally reshaped the interest rate outlook for the remainder of the year. The immediate and powerful reaction was seen most vividly in the cryptocurrency market, where Bitcoin, the flagship digital asset, surged past the $83,000 mark. This price movement underscores the deep sensitivity of risk assets, particularly Bitcoin, to shifts in the liquidity environment. The prospect of cheaper capital and a more accommodative monetary policy stance is being interpreted as a major bullish catalyst for cryptocurrencies. Investors are anticipating that lower interest rates will reduce the opportunity cost of holding non-yielding assets like Bitcoin, while also potentially weakening the U.S. dollar and driving capital into higher-risk, higher-return investments. This episode highlights the evolving narrative of bitcoin as a macro asset, increasingly correlated with—and reactive to—traditional financial market signals and central bank policy expectations. The convergence of a dovish Fed signal and Bitcoin's powerful price response sets a compelling stage for continued volatility and potential upward momentum in the crypto asset class as 2026 unfolds.

Fed Rate Cut Odds Surge to 71%, Bitcoin Tops $83K on Dovish Signals

Markets are pricing in a 71% chance of a December Fed rate cut after New York Fed President John Williams hinted at near-term easing. The dovish shift follows softening labor data and contained inflation risks, with CME's FedWatch tool reflecting a dramatic rise from 35% earlier this week.

Bitcoin surged past $83,000 as the prospect of cheaper capital flooded risk assets. Williams' Santiago conference remarks underscored the Fed's balancing act between price stability and employment - a narrative now driving crypto markets alongside traditional assets.

Fed Announcements Propel BTC Price to $85,000, Yet Challenges Remain

Bitcoin surged to $85,000 following Federal Reserve announcements but quickly retreated to $83,000 after U.S. economic data revealed lingering market fragility. Over $2 billion in crypto liquidations underscored the volatility. The Michigan Sentiment Index edged up to 51, slightly exceeding forecasts, yet consumer confidence remains far below 2024 levels. Economic condition expectations deteriorated sharply, signaling persistent macroeconomic headwinds.

All eyes now turn to December 5th's final sentiment report before the Fed's rate decision. With key data missing from their assessment, policymakers face heightened uncertainty—mirrored in Bitcoin's whipsaw price action. Market participants are parsing every indicator for clues on monetary policy's trajectory.

MicroStrategy's Index Inclusion at Risk as JPMorgan Flags Bitcoin-Linked Concerns

JPMorgan warns MicroStrategy may face removal from MSCI indices, potentially triggering $2.8B in passive outflows. The bank's internal analysis suggests index providers are reevaluating companies with concentrated Bitcoin exposure as BTC slides to $81K.

Michael Saylor counters that MicroStrategy operates as a Bitcoin-backed business, not a passive fund. The debate highlights growing institutional tension between traditional finance frameworks and crypto-native corporate strategies.

U.S. Lawmaker Proposes Bitcoin Tax Payments as DeepSnitch AI Gains Traction

Republican Representative Warren Davidson introduced the Bitcoin for America Act on November 21st, legislation that WOULD allow federal tax payments in Bitcoin. The proposal would direct BTC payments into a U.S. strategic reserve without triggering taxable events—a move designed to accumulate government holdings without market disruption.

The crypto market reacted immediately, with Bitcoin stabilizing near $84,000. Attention has shifted to emerging projects like DeepSnitch AI, which has raised over $520,000 by combining AI technology with meme coin virality. Analysts speculate its dual appeal could drive 100-300x returns as capital flows into innovative crypto sectors.

While BlockDAG's price trajectory remains uncertain, the legislative development signals growing institutional acceptance. The bill creates a potential win-win: simplifying crypto-native tax compliance while expanding government Bitcoin reserves off-market.

IBIT ETF Slumps Amid Bitcoin Sell-Off and Fed Rate Uncertainty

The iShares Bitcoin Trust (IBIT) closed the week down 19.5% over five days, extending its year-to-date decline to 7.71%. Technical indicators show a Sell consensus, with 15 Bearish ratings outweighing 6 Bullish ones. Retail sentiment remains negative—only 1.9% of tracked portfolios hold the ETF.

Bitcoin’s 2.5% drop to $84,341 dragged IBIT to $47.97 in late trading. Leveraged longs from summer positions are now unwinding, exacerbating the sell-off. Market expectations for a December Fed rate cut have dwindled to 30%, further pressuring crypto assets.

‘Forced liquidations are creating a feedback loop,’ noted one trader. Yet some see opportunity—TEN Protocol’s Cais Manai observes institutional accumulation during dips, suggesting long-term conviction remains intact.

Robert Kiyosaki Divests Bitcoin Holdings Amid Market Downturn

Robert Kiyosaki, the financial author renowned for his advocacy of Bitcoin and precious metals, has unexpectedly sold his Bitcoin holdings. This MOVE comes despite his previous bullish stance, including a prediction that Bitcoin could reach $250,000 by 2026. The decision underscores the impact of the current market downturn and broader economic factors on even the most steadfast crypto proponents.

Kiyosaki’s history of strategic acquisitions during past dips contrasts sharply with this recent divestment. His actions serve as a cautionary signal to investors, highlighting the volatility and unpredictability of cryptocurrency markets. The sale raises questions about whether this is a temporary retreat or a fundamental shift in his long-term outlook on digital assets.