The cryptocurrency appears to have stabilized, and if everything falls into place at the right time, a holiday rally might be in order.
The Catalyst That Could Push Bitcoin Higher Before the Holidays
It went largely unnoticed, but on Wednesday, Treasury Secretary Scott Bessent wrapped up several important interviews with five candidates, all vying for the top spot at the Federal Reserve. The day before, Bessent told CNBC that U.S. President Donald Trump will likely pick the next Fed chairman before Christmas. The highly anticipated announcement is expected to jolt markets.
“There’s a very good chance that the president will make an announcement before Christmas,” Bessent told CNBC’s Rebecca Quick. “It’s his prerogative, whether it’s before the Christmas holidays or in the new year.”
Bloomberg reported that current Director of the National Economic Council, Kevin Hassett, had emerged as the frontrunner for the Fed chair role, but a lot can change in four weeks, especially given the caliber of talent Hassett is up against. Christopher Waller is a sitting Fed governor and seasoned academic. He was previously an economics professor at Notre Dame before joining the Fed as senior vice president of research at the St. Louis branch.
Then there’s Kevin Warsh, who at the age of 35 in 2006, was the youngest Fed governor in the central bank’s history. A lawyer by training, Warsh cut his teeth on Wall Street, leading mergers and acquisitions at Morgan Stanley. Warsh is now the Visiting Fellow in Economics at Stanford’s Hoover Institution.
Read more: The Fed May Have Just Resuscitated Bitcoin
But regardless of Trump’s selection, one thing seems clear: the new chairman will be dovish. The CME Fedwatch Tool now shows an 87% probability of an interest rate cut at the next Fed meeting slated for December 9-10. A post-Thanksgiving rate reduction coupled with the confirmation of a Trump-aligned Fed chair might just be what bitcoin needs to trigger a holiday rally.
“We’re near a bottom,” said Tom Lee, co-founder and head of research at investment firm Fundstrat, during a recent CNBC interview. “I think it’s still very likely that bitcoin is going to be above $100,000 before year-end.”
Overview of Market Metrics
Bitcoin was trading at $90,912.38 at the time of reporting, down slightly by 0.71% for the day but 7.58% higher on a weekly basis, according to Coinmarketcap. Volatility was minimal, with the cryptocurrency’s price ranging from $90,257.12 to $92,969.09 over 24 hours.
Daily trading volume was somewhat lower today, easing 5.24% to $60.27 billion. Market capitalization, much like price, was mostly flat and took a slight dip to $1.81 trillion. Bitcoin dominance barely budged in the last 24 hours, retreating 0.03% to reach 59.25%.
Total bitcoin futures open interest was 0.56% lower than yesterday at $59.93 billion, according to Coinglass data. Liquidations remained relatively tame, totaling $85.21 million. Losses were evenly split between long traders and short sellers at $40.79 million and $44.42 million respectively.
FAQ ⚡
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Why is bitcoin stabilizing after Thanksgiving?
Bitcoin’s price steadied as markets anticipate a major catalyst: Trump’s upcoming pick for the next Federal Reserve chair. -
Why does the Fed chair appointment matter for BTC?
All leading candidates are considered dovish, raising expectations of rate cuts that typically boost risk assets like bitcoin. -
What timeline are analysts expecting for the announcement?
Treasury Secretary Scott Bessent says Trump is likely to name the new Fed chair before Christmas. -
Could this trigger a year-end bitcoin rally?
A December rate cut combined with a dovish appointee could create the perfect setup for bitcoin to push toward $100K.