Bitcoin extends losses below $89,000 as Fed minutes outline two-sided risks, no preset path for rate cuts

Bitcoin extended its decline to approximately $88,600, its lowest point since April, coinciding with the release of the Federal Reserve's October meeting minutes. These minutes highlighted "two-sided risks," with some officials noting signs of economic vulnerability like slowing job gains, while others remained cautious due to persistent inflation failing to sustainably reach the 2% target. Consequently, officials stressed that monetary policy has no preset path, leaving the December decision uncertain. Prediction markets reacted by significantly reducing the odds of a December rate cut. This macroeconomic uncertainty exacerbates Bitcoin's troubles, as analysts warn that aggressive leverage accumulation in the derivatives market, described as "knife-catching," mirrors past periods that led to further declines, with a potential bottom estimated between $84,000 and $86,000.

(Source：The Block)