Bitcoin returns to $90,000 and depends on the Fed for further gains

Source: Exame
Original Title: Bitcoin returns to $90,000 and depends on the Fed for further gains
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This Friday, the 5th, bitcoin returned to the $90,000 range after reaching as high as $93,000, the highest price in the last 24 hours. While the slight drop can be explained by withdrawals from a bitcoin ETF managed by a major asset manager in the US, the outlook for the world’s largest cryptocurrency continues to depend on US monetary policy and the upcoming decision by the Federal Reserve on the country’s interest rates.

At the moment, bitcoin is priced at $90,647, down 2.1% in the last 24 hours, according to CoinMarketCap data. Over the past thirty days, the cryptocurrency has accumulated a loss of more than 12%.

Why did the price of bitcoin fall?

Bitcoin returned to the $90,000 range after new withdrawals from the bitcoin ETF, which saw another $113 million in outflows and added pressure to market sentiment. Meanwhile, stock market performance remained virtually stable. In the futures market, caution and strong deleveraging continue. Open interest fell to $21 billion after reaching $25 billion a month ago, indicating a reduced appetite for risk and lower exposure from traders.

In addition, there is a significant concentration of long positions near $90.6K, making this a level to watch in case of further corrections. In the macroeconomic scenario, the next Fed decision, scheduled for December 10, remains a catalyst. The market is pricing in an 87% probability of a 25 basis point rate cut, which could bring some relief to risk assets if confirmed.