Fed Hawkish Stance Slashes December Rate Cut Odds to 50%: Bitcoin Plunges Below $100K

Federal Reserve hawkish comments have slashed December rate cut probabilities from 95.5% a month ago to around 50%, triggering a $5,000+ Bitcoin overnight drop below $100,000. This shift, amid macroeconomic uncertainty and liquidity shortages, sparked leveraged sell-offs, U.S. stock declines led by tech, and a defensive market stance.

Fed’s Hawkish Pivot: Rate Cut Odds Plummet to 50.7%

Recent Federal Reserve hawkish comments from officials cooled easing expectations, dropping December cut odds to 50.7% from 95.5%. This reversal, driven by persistent inflation concerns and strong labor data, halted the dovish narrative. The probability shift reflects fears of overheating, with core PCE above 2.7% and unemployment at 4.1%. Markets now price in one cut at best for 2025, contrasting earlier three-cut forecasts.

• Odds Drop: 95.5% → 50.7%; December meeting key.
• ** Hawkish Drivers**: Inflation persistence; labor strength.
• Market Reaction: Risk-off; DXY above 100.

Bitcoin’s $5,000+ Plunge: Below $100K on Leverage Wipeout

Bitcoin (BTC) cratered over $5,000 overnight, breaking $100,000 psychological support amid extreme panic. The Federal Reserve hawkish comments fueled a leveraged sell-off, with $1.1 billion liquidations—70% longs—wiping 303,000 traders. BTC’s 16% weekly loss from $126,406 highs reflects liquidity shortages, with $41.6B long-term holder sales since June capping rebounds. RSI at 45 oversold hints at consolidation, but $98,200-$95,000 support is next if $100K fails.

• Price Action: -$5K+; below $100K; 24H -8%.
• Liquidations: $1.1B; 70% longs.
• Volume: $50B+; dominance 60%.

U.S. Stocks Tank: Tech Leads Decline on Macro Fears

U.S. stocks plunged, with Nasdaq -4% and S&P 500 -3%, tech giants like Nvidia (-5%) and Apple (-4%) hardest hit. The Federal Reserve hawkish comments amplified uncertainty, with TGA buildup absorbing $1.2 trillion liquidity. Tech’s 35x P/E valuations face pressure from rising yields, while 65% cut odds offer slim hope.

Community Sentiment: Bearish Bias with $95K-$92K Support

Discussions highlight Fed policy disagreements and data delays, with short-term direction unclear. WWG-Mouse sees range-bound lows, targeting $115.6 if support holds, or shorts on breaks. LuYao_Trader declares “bull market over,” advising sidelines or shorts with stops. 80% sentiment bearish, but 20% eye $95K-$92K as buy zones.

2025 Bitcoin Price Prediction: $130K-$200K Consensus Amid Volatility

Bitcoin price prediction for 2025 targets $130K-$200K. Changelly $123,849; CoinDCX $131,500. VanEck $180K-$200K on reserves. Bull catalysts: Liquidity rebound; bear risks: $95K test.

For investors, how to buy Bitcoin via compliant platforms ensures entry. How to sell Bitcoin and how to cash out Bitcoin offer liquidity. Sell Bitcoin for cash and convert Bitcoin to cash enable fiat conversions.

Trading Strategy: Hawkish Shorts

Short-term: Short below $100K targeting $95K, stop $102K (2% risk). Swing: Sidelines or dips, staking for 5% APY. Watch $98K breakout; above $102K, exit.

In summary, Federal Reserve hawkish comments slashing cut odds to 50% trigger BTC’s $100K break and market panic, but $130K-$200K 2025 holds on rebound potential.