Bitcoin Faces A Pivotal December As Fed Shift Sparks Big Price Predictions
So, let’s talk about what’s happening with bitcoin right now, because the mood across the crypto market has shifted in a big way heading into December. After a huge run-up earlier in the year—where bitcoin climbed from just above $40,000 in 2024 to an all-time high of $126,000 in October—the excitement has cooled. Prices slipped, confidence wavered, and fears of a bigger crash started creeping in. But suddenly, a new wave of speculation is rising, and it’s all tied to the Federal Reserve, political moves in Washington, and some surprising signals coming out of global markets.
What’s interesting is that bitcoin’s recent dip hasn’t killed the optimism among long-time crypto bulls. In fact, many traders are now pointing to December as a potential turning point. A quiet but important signal out of China has already caught the attention of analysts, and now attention is shifting toward the Federal Reserve—specifically, the possibility of major policy changes that could pump fresh energy into risk assets like bitcoin.
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One of the biggest triggers is the rising expectation that Kevin Hassett, a former White House economist and past advisor to Coinbase, could be named the next Federal Reserve chair. His odds have jumped sharply on prediction markets, and that alone has sparked speculation that monetary policy could soon turn more dovish. Hassett has been vocal about lowering rates, and markets tend to react quickly when leadership shifts hint at cheaper borrowing and looser financial conditions. If he does get picked, pressure on the U.S. dollar would be expected, and historically, that kind of environment often boosts bitcoin.
At the same time, the Fed is widely expected to end its massive quantitative tightening program. The balance sheet has already been reduced from about $9 trillion to $6.6 trillion, and many analysts believe the brakes will be lifted on December 1. That would effectively inject more liquidity into the system. Investors like Cathie Wood have framed this as a key moment, even reaffirming long-term predictions that place bitcoin far above the million-dollar mark in the future.
Market strategists such as Tom Lee are also backing the idea that the current slide could flip into a rapid rebound. Historically, bitcoin’s recoveries tend to happen faster than its declines, and many traders are betting that December could see prices shoot back above $100,000—maybe even toward new highs.
Institutional interest is adding fuel as well. BlackRock’s push deeper into crypto continues to pull Wall Street along, and several analysts now believe bitcoin could reach between $150,000 and $200,000 before the year ends. The argument centers on fixed supply, growing institutional demand, and the expectation of further U.S. interest rate cuts.
So, heading into December, bitcoin isn’t just drifting—it's bracing for what many believe could be a major inflection point. Whether that leads to the next big surge or another surprise twist, the market clearly sees something big on the horizon.
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