Panic sentiment eases, Bitcoin holds at 90,000, can the Christmas market make a rebound?

After experiencing the largest pullback since April, the US stock market rebounded and stabilized last week, opening the chapter for the last month of the year this week. Sentiment in the crypto market has slightly improved from the previous extreme panic, and cautious optimism is beginning to take root. As of the deadline, Bitcoin (BTC) remains above 90,000. Although it has rebounded significantly from the low point of 80,600 in November, the cumulative decline over the past month is still as high as 17%. On average, both the US stock market and Bitcoin tend to have good Christmas performance in December. According to statistics, Bitcoin's average increase in the fourth quarter is 77%, but this year, Bitcoin has shown declines in October and November. Is there a chance for it to catch up?

Key data has been released one after another, influencing the direction of the December interest rate decision.

This week, several important data will be announced, including the ISM Manufacturing and Services Purchasing Managers' Index (PMI), ADP Employment Report, Personal Consumption Expenditures (PCE) Price Index, etc.

Inflation and consumer demand data are receiving a lot of attention, and these figures are likely to affect the market's expectations regarding whether the Federal Reserve will continue its rate-cutting cycle. Additionally, the market is closely watching potential changes in the central bank's leadership, with preparations underway for the appointment of a new chairperson of the Federal Reserve, with the strongest candidate being White House economic advisor Kevin Hassett.

The Federal Reserve has entered its pre-meeting silent period, but Chairman Powell and Governor Michelle Bowman will still deliver speeches, although they are prohibited from commenting on the economic outlook or policy. The Federal Reserve will hold a two-day meeting on 12/9, and it is expected that the focus of the discussion will be on the labor market conditions and whether a third consecutive rate cut is necessary. According to the CME FedWatch index, currently 87% of traders believe the Federal Reserve will cut rates by another 25 basis points, lowering the benchmark rate to 3.5% to 3.75%.

The encryption sentiment is slightly warming up, does Bitcoin have a chance to welcome the Christmas market?

The crypto market sentiment has slightly warmed, improving from extreme panic to panic, and a cautiously optimistic sentiment is beginning to emerge.

However, Bitcoin's weak performance relative to tech stocks, as well as the criticism of Tether's reserves backed by Bitcoin, still pose pressure. Bitcoin's dominance remains at 58.7%, failing to lead the overall crypto market capitalization upward.

(Tether bets on Bitcoin and gold in preparation for interest rate cuts, Arthur Hayes: a 30% drop in shareholder equity will result in zero)

Before the deadline, Bitcoin maintained above 90,000, and although it has rebounded significantly from the low point of 80,600 in November, the cumulative monthly decline is still as high as 17%. Meanwhile, Ethereum is still hovering around the 3,000 mark, with a monthly decline of 21%.

On average, the US stock market and Bitcoin both have decent Christmas performances in December. According to Coinglass statistics, Bitcoin's performance in the fourth quarter is the most impressive, with an average pump of 77%. However, this year Bitcoin has experienced a fall in October and November. Is there a chance for a rebound?

This article discusses the easing of panic sentiment, with Bitcoin holding steady at 90,000 USD. Will the Christmas market be able to rebound? Originally appeared on Chain News ABMedia.