Bitcoin drops again, falling below $94,000, erasing all gains this year

On the 17th Beijing time, after rising to $96,600, Bitcoin once again plunged, dropping to $93,778.6 and erasing all gains this year. As of around 7 a.m., Bitcoin fell over 1%, breaking below $95,000. Several other cryptocurrencies also declined in tandem.

Coinglass data shows that over 150,000 traders were liquidated in the past 24 hours worldwide.

In terms of news, recent market sentiment has cooled on expectations of a rate cut in December, and overall risk appetite in the U.S. has significantly declined.

According to the Securities Times citing CME “FedWatch,” the probability of the Federal Reserve cutting interest rates by 25 basis points in December has fallen below 50%, now only at 44.4%, while the chance of holding rates steady has increased to 55.6%; the probability of a total 25 basis point cut by the Fed by January next year is 48.6%, with a 34.7% chance of no change, and a 16.7% chance of a 50 basis point cut.

Previously, Caixin reported that short-term interest rate futures (which reflect the financial market’s expectations of Fed policy in real-time) show that the likelihood of the Federal Open Market Committee (FOMC) cutting rates on December 10 has dropped to 47%, down from 67% earlier last week.

According to Morgan Stanley’s forecast, the Fed will be able to access complete data on U.S. September employment, inflation, retail sales, and Q3 GDP preliminary figures before the December 9-10 meeting, depending on whether the October and November employment reports are released on time.

Additionally, Bank of America and Nomura have already forecasted in their research reports that the Fed will hold steady in December.

According to CCTV News, on the 14th, Dallas Fed President Logan stated that unless there is clear evidence of a faster decline in U.S. inflation, she does not support another rate cut in December. Logan pointed out that U.S. inflation remains on an upward trend, and returning to the 2% target will take time.

Previously, Chicago Fed President Goolsbee said that the U.S. government shutdown has led to missing economic data, making him more cautious about further rate cuts. Fed Governor Lisa Cook also stated that, given the dual risks of inflation and labor market prospects, it is uncertain whether rates will be cut again in December.

(Note: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.)