Bitcoin Steadies Around $90,000 Amid Thin Liquidity and Fed Rate Cut Expectations
Bitcoin is trading around $90,000 amid thin year-end liquidity, resulting in volatility and range-bound movements. Market participants expect a shallow easing path from the Federal Reserve, with more emphasis on guidance rather than an actual rate cut. This week's 25 basis points rate cut is fully priced in, with Polymarket odds indicating traders lean toward a pause in January.
Data from QCP shows that perpetual open interest for Bitcoin and Ethereum has fallen about 50% since October, reducing the market's capacity to absorb directional trades. OKX Singapore CEO Gracie Lin noted that deleveraging has cleared crowded trades, improving market structure and allowing prices room to move, pushing Bitcoin back toward $91,000.
Meanwhile, policy signals are diverging across major central banks: the Bank of England is divided, the European Central Bank remains firm, and the Bank of Japan appears poised to tighten. Rising macroeconomic friction in Asia adds to the complexity. Overall, market direction will largely depend on Federal Reserve guidance and cross-central-bank signals rather than the rate move that is already priced in.
