Bitcoin Dips Below $93,000 as Fed Rate-Cut Odds Weaken, Markets Exhibit Risk-Off Sentiment
Bitcoin dropped to around $93,000 in Asia following a decline in December Federal Reserve rate-cut odds to about 40%, down from over 60% a week earlier. This shift contributed to risk-off moves and declines in stock markets.
In the 24-hour period, total crypto liquidations reached $617.45 million, with Bitcoin accounting for $242.19 million and Ether for $169.06 million. The largest single wipeout was a $30.60 million Bitcoin position on Hyperliquid. Total crypto market capitalization remained near $3.31 trillion, with Bitcoin priced near $95,051, Ether at $3,172, and XRP at $2.25.
Stock indices in Europe fell, including the DAX (-1.39%), FTSE 100 (-1.05%), CAC 40 (-0.11%), and Euro Stoxx 50 (-0.83%). In Asia, markets showed mixed to negative moves, with the Nikkei 225 down 1.77%, ASX 200 down 1.35%, NZX down 1.58%, and Shanghai Composite down 0.16%.
Spot ETF outflows increased and liquidity thinned during this period. By late morning, Bitcoin hovered near $95,051, while 12-hour liquidations totaled $389.39 million (mostly longs at $283.40 million) and 4-hour liquidations were $76.11 million (short losses $67.04 million).
Japan’s Financial Services Agency is considering regulations to treat crypto as financial products, proposing insider-trading restrictions, a flat 20% tax rate, and disclosures for 105 listed tokens.
Market participants note that renewed institutional conviction will likely drive Bitcoin's next move. Upcoming earnings reports and US economic data this week are expected to shape the Fed rate narrative, while enthusiasm for AI remains an area of focus.
