The cryptocurrency market is experiencing significant volatility. Bitcoin rebounded by over $3,000 after hitting a new seven-month low of just below $81,000. This sharp increase is attributed to comments made by John Williams, President of the New York Federal Reserve, who indicated the possibility of lowering interest rates in the near future.

Despite admitting that progress in tackling inflation has “temporarily stalled,” he conveyed optimism regarding the Fed’s ability to bring rates down while maintaining the long-term target of 2% inflation.

“I view monetary policy as being modestly restrictive… I still see room for further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to neutral, thereby sustaining the balance between our dual objectives,” he concluded.

His optimistic outlook came amid reports suggesting that the December Federal meeting might not include a rate cut due to lagging economic data. Following his remarks, market reactions shifted dramatically as the probability of a 25 basis point cut increased to 62%.

Bitcoin’s price swiftly climbed from $80,600 to $84,000, facing immediate resistance. However, the cryptocurrency had just undergone a notable decline, dropping from over $107,000 on November 11 to its recent low.

US Fed Rate Decision on Polymarket
US Fed Rate Decision on Polymarket

For more details, check the original article on CryptoPotato.