Fed December Rate Cut Odds Plunge to 33% as Bitcoin Falls Below $89,000
The probability of the Federal Reserve cutting interest rates at its December FOMC meeting has dropped sharply to 33%, as "extreme fear" sentiment grips the crypto market and Bitcoin continues to slide below $89,000. From 67% to 33%: Confidence in a Rate Cut Vanishes in Just a Few Weeks According to CME data, in the first week of November, investors were pricing in a 67% chance of a Fed rate cut. However, as inflation figures continued to show no clear downward trend,
The probability of the Federal Reserve cutting interest rates at its December FOMC meeting has dropped sharply to 33%, as "extreme fear" sentiment grips the crypto market and Bitcoin continues to slide below $89,000.
From 67% to 33%: Confidence in a Rate Cut Vanishes in Just a Few Weeks
According to CME data, in the first week of November, investors were pricing in as high as 67% odds of a Fed rate cut. However, as inflation figures continued to show no clear downward trend, markets sharply revised their expectations, pushing that number below 50% by Thursday and now down to just 33%.
On prediction markets such as Kalshi and Polymarket, rate cut expectations remain higher (roughly 70% and 67%, respectively), but traders broadly have grown more cautious. A report from The Kobeissi Letter suggests that persistent inflation concerns are pushing investors toward a scenario in which the Fed holds rates at their current level for longer.
Bitcoin Falls Below $89,000, "Death Cross" Pattern Triggers Bearish Signal
The crypto market continued to face heavy selling pressure as BTC lost the $90,000 level on November 20 and slipped below $89,000. Notably, Bitcoin has traded below its 365-day moving average (365-MA) for six consecutive sessions — a level many analysts consider key support.
Adding to the bearish picture, the 50-day EMA has crossed below the 200-day EMA, forming a "death cross" — a classic technical signal that suggests further downside may be ahead.
Some analysts forecast BTC could pull back to the $75,000 range before bottoming out and recovering toward the end of 2025. Analyst Benjamin Cowen warned:
"If Bitcoin doesn't bounce within the next week, the market could see another leg down before recovering back to the 200-day SMA, forming a lower high in the broader cycle."
Sentiment Index Drops to "Extreme Fear"
The Crypto Fear & Greed Index currently stands at 16, reflecting an "Extreme Fear" reading. This is the lowest level of the year — just one point away from 2025's psychological low, according to CoinMarketCap data.
Negative sentiment combined with fading expectations of a Fed rate cut are driving capital out of the crypto market at an accelerating pace, raising concerns about the potential onset of a "mini bear market" phase.