Fed Rate-cut Bets Surge: Can Bitcoin Finally Break $91k To Go Higher?

Bitcoin price stayed stuck near $91,000 due to weak ETF flows and cautious derivatives as stocks and gold rallied on rising rate-cut bets.

Bitcoin (BTC) failed to reclaim $93,000 despite positive momentum in the US stock market and rising gold prices. With the S&P 500 trading just 1% below its all-time high, traders are evaluating what could spark sustainable bullish momentum for Bitcoin.

Demand for BTC put (sell) options and stagnant ETF inflows kept momentum capped despite easing macroeconomic conditions.

AI-driven tech relief has cut market stress, but BTC strength relies on holding $90k as investors bet on liquidity support amid softer job market data.

Bond market futures data from CME Group shows traders assigning 87% odds to an interest rate cut on Dec. 10, up from 71% the prior week.

Signs of weakness US the US job market prompted investors to expect a more expansionary monetary policy. The US Labor Department noted that continuing claims climbed to 1.96 million in the week ending Nov. 15.

Meanwhile, the sentiment in BTC derivatives was not significantly altered by the recent price weakness, yet demand for bullish positioning remains notably cautious.

Bitcoin monthly futures held a 4% premium over spot markets on Saturday, unchanged from the previous week.

Under neutral conditions, this basis typically ranges from 5% to 10% to reflect carrying costs. The lack of appetite for leveraged long positions may indicate lingering concerns after Bitcoin’s 18% pullback over the past 30 days.

BTC options markets can help evaluate whether whales and market makers fear additional downside. Bearish phases are often marked by increased demand for put (sell) options.

Source: CoinTelegraph