Uncertainty in U.S. Federal Reserve Policy Leads to a Sharp Bitcoin Drop

Bitcoin fell to levels last seen in April 2025, reflecting a massive outflow of capital from risk assets. On Thursday, November 20, its price dropped to $86,270, reaching the lowest point in more than half a year.

BTC’s decline is being exacerbated by uncertainty over whether the Federal Reserve will cut interest rates next month.

Employment data released for September showed that the U.S. economy added 119,000 jobs, significantly above the expected 50,000.

The optimistic data cast doubt on the likelihood of a Fed rate cut in December. According to the CME Group’s FedWatch tool, that probability now stands at roughly 40%.

The drop in Bitcoin also coincided with a stock market correction, despite Nvidia’s impressive earnings report.

Cryptocurrencies are suffering from active selling by whales who follow the four-year cycle, during which prices typically fall, noted CoinShares research head James Butterfill.
“And although we do not share this view from a fundamental perspective, it has partially played out — large holders have been selling since September.”

Additionally, early October saw a cascade of liquidations among highly leveraged crypto positions, which created conditions for ongoing volatility.

See also: "Ethereum Cryptocurrency Drops 11% in Bearish Pullback Trading"

#Fed #Bitcoin (BTC) #Price drop

Share: