Bitcoin Steadies At $87K With Markets Up On Rate-Cut Bets

The major US indexes started the holiday-shortened week with solid advances, with strength in the so-called Magnificent Seven group of AI-related momentum stocks once again putting the Nasdaq in front.

Signals from the Fed added fuel to the rebound. Fed Governor Christopher Waller lifted spirits on Monday by signalling support for a rate cut next month, helping to ease nerves after a choppy spell driven by worries over stretched AI related valuations and uncertainty about the policy path.

Some investors now see November’s pullback as a possible prelude to a seasonal rally into year end.

Dovish Signals From Multiple Fed Voices Push Rate Bets Higher

Waller’s comments followed similar remarks from other policymakers. San Francisco Fed President Mary Daly voiced support for a December cut in a television interview, while New York Fed President John Williams said on Friday that a near term reduction in borrowing costs remained on the table, reinforcing the market’s tilt toward easier policy.

US 10-year Treasury yields slipped four basis points to about 4.02% on Monday as rate expectations shifted. Money markets now imply roughly a 90% chance that the Fed will lower its benchmark rate at the December meeting, a sharp change from the more hesitant pricing seen only weeks ago and a backdrop that tends to favour assets such as growth stocks and Bitcoin.

Attention now turns to a full slate of economic releases. Ahead of Thanksgiving and Black Friday, September retail sales data due Tuesday are expected to show some cooling as households continue to wrestle with high prices.

Producer prices and durable goods orders are also on the docket this week, while jobless claims covering the key November survey week will carry extra weight as the Fed leans on alternative indicators in the absence of regular payroll figures.

Economic Reports Strengthen Market View That A December Cut Is Likely

A batch of economic reports, released with a delay after a six-week government shutdown, has pointed to a softer labour market alongside stubborn inflation. That mix has strengthened the case in markets that the Fed can deliver what many see as a third and final rate cut of 2025 at the December meeting.

Earnings have added support. By Friday, nearly 95% of S&P500 companies had reported third-quarter results, with about 83% beating estimates. Analysts now expect aggregate earnings growth of 14.7% for the quarter, compared with an 8.8% forecast at the start of October, according to LSEG data, giving equity bulls another reason to stay engaged.

Crypto analysts are watching how Bitcoin trades against this backdrop. In a pattern seen earlier in 2025, the token has once again peaked ahead of major equity benchmarks, a sequence that some read as a warning that traditional markets could still face another leg of correction even as they bounce.

Analysts at Bitfinex said recent on-chain data show a heavy wave of loss-taking, reflecting how top-heavy the market has become, with dense concentrations of buying between $106,000 and $118,000 now capitulating at a loss.

They argued that this structure leaves two broad paths, either a strong resurgence in demand steps in to absorb ongoing selling, or the market is pushed into a longer and potentially deeper accumulation phase before it can find a more stable equilibrium.