Christmas bounce missing: Will Bitcoin see a one-month low?” #bitcoin

Bitcoin fell below $93,000 on Monday, hitting its lowest price in nearly a month, since Nov. 26, as the so-called Santa Claus rally failed to make a positive impact and the cryptocurrency’s charts looked as red as the holiday icon’s suit.

Current Market Conditions

Less than a week ago, the leading cryptocurrency was trading above $108,000, hitting a record high as the holiday season approached. But in a Scrooge-like turnaround, the Federal Reserve’s hawkish tone has weighed on the asset’s price by announcing a more cautious approach to interest rate cuts next year.

Low interest rates are typically favorable for Bitcoin and “risky” assets like stocks. When borrowing becomes cheaper, investors typically look for riskier assets that may yield better returns than those associated with holding safer assets like cash and U.S. bonds.

When the Federal Reserve cut its benchmark interest rate by 25 basis points to a target range of 4.25% to 4.5% last week, policymakers signaled that there would be fewer rate cuts next year than investors had previously expected. Among Fed officials, a majority expected two rate cuts next year, fewer than the four cuts the U.S. central bank had forecast in September.

Inflation has slowed sharply after peaking at 9.1% year-over-year in June 2022, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index. With an increase of 2.7% in the 12 months ending in November, the latest report showed that inflation remains above the Fed’s 2% target.$BTC