{"id":92345,"date":"2025-12-18T12:13:18","date_gmt":"2025-12-18T09:13:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92345"},"modified":"2025-12-18T12:17:29","modified_gmt":"2025-12-18T09:17:29","slug":"bitcoin-steadies-near-86700-as-markets-await-a-friendly-fed-chair","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitcoin-steadies-near-86700-as-markets-await-a-friendly-fed-chair\/","title":{"rendered":"Bitcoin steadies near $86,700 as markets await a ‘friendly’ Fed chair"},"content":{"rendered":"

Bitcoin held around $86,700 after US President Donald Trump pledged to appoint a new Fed<\/span> chair who would support significant interest-rate cuts, Reuters<\/a> reported.<\/p>\n

\"BTCUSDT_2025-12-18_10-58-40\"
15-minute chart of BTC\/USDT on Binance. Source: TradingView<\/a>.<\/figcaption><\/figure>\n

On 17 December the price briefly touched $90,000. At the time of writing it trades at $86,828, up 0.03% on the day. Swings are driven by thin liquidity amid macroeconomic uncertainty.<\/p>\n

At a press conference, Fed chair Jerome Powell signalled<\/a> the central bank may not cut in January. Market participants put the odds of holding the current range (3.50\u20133.75%) at 73.4%.<\/p>\n

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Source: CME FedWatch<\/a>.<\/figcaption><\/figure>\n

The picture could change in May after a leadership shift. Trump aims to lower the target to 1%.<\/p>\n

The president has already interviewed crypto-friendly Christopher Waller. Other contenders include former Fed governor Kevin Warsh and National Economic Council head Kevin Hassett.<\/p>\n

LVRG research director Nick Ruck linked<\/a> crypto\u2019s instability to a global retreat from risk. The market is also weighed down by slower inflows into ETF<\/a>s, deleveraging in derivatives and a high correlation with equities. He noted that investors are rebalancing into year-end and hopes for a \u201cSanta Claus rally\u201d are fading.<\/p>\n

Kronos Research CIO Vincent Liu sees a fundamental repricing rather than a temporary seasonal factor.<\/p>\n

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“The market has shed leverage and is waiting for a real catalyst. Until fresh liquidity appears, we face sideways action,” the specialist said.<\/em><\/p>\n<\/blockquote>\n

Liu does not view the pullback as the start of a \u201ccrypto winter\u201d. He said the risk of a prolonged decline would rise only if $81,000 is lost, which he calls the market\u2019s \u201ctrue mean\u201d.<\/p>\n

The Fed withdraws its 2023 guidance<\/h2>\n

The Federal Reserve withdrew<\/a> its 2023 directive that had restricted some banks\u2019 work in the crypto industry. The regulator cited an \u201cevolution in views on risks\u201d.<\/p>\n

Previously, state-chartered financial institutions faced a de facto \u201cpresumption of prohibition\u201d. They were not allowed to engage in \u201cnew activities\u201d (including crypto services) if these were unavailable to national banks.<\/p>\n

The Fed noted that since the publication of the earlier rules, the financial system and understanding of innovative products have evolved.<\/p>\n

The regulator\u2019s approach is now more flexible:<\/p>\n