Why Bitcoin (BTC) Is Down: U.S. Drives Crypto Weakness as Fed Divided on Rate Cut
Bitcoin fell below $102K due to weak U.S. demand, evidenced by a negative Coinbase Premium, coinciding with Fed uncertainty over a December rate cut.Summary
Bitcoin tumbled back below $102,000 on Wednesday, with ether and other major altcoins also declining sharply as U.S. traditional markets opened. This weakness is largely attributed to lackluster U.S. investor appetite, highlighted by the Coinbase Premium—a gauge comparing Coinbase's BTC price to Binance's—experiencing its longest negative streak since the April correction. This indicates weak American demand for Bitcoin.
Simultaneously, uncertainty surrounding the Federal Reserve's next move has increased following its October meeting. Policymakers are reportedly divided on whether the greater risk is persistent inflation or a softening labor market, making a December rate cut highly uncertain, or a "tossup." This uncertainty, exacerbated by the recent government shutdown affecting data releases, has contributed to over $1.8 billion in net outflows from U.S.-listed spot bitcoin ETFs since the Fed's meeting, keeping BTC on edge.
(Source：CoinDesk)