Bitcoin rebounded after holding the 80,000 level, grateful that the market remains cautious before the holiday.

Supported by reports that the Federal Reserve might cut interest rates and U.S. officials may allow Nvidia to sell artificial intelligence chips to China, market sentiment slightly recovered on Friday. Bitcoin has been weak recently, dipping to a low of $80,600 on Friday night, down 36% from its October high, and the total market capitalization of the crypto market has fallen below $3 trillion, with the fear and greed index remaining at extreme fear levels. Bitcoin (BTC) made a gradual recovery over the weekend, hovering around 87K before the deadline, while Ether (ETH) also slightly rose above 2,800.

The expectation of interest rate cuts and NVIDIA chips are expected to boost the market.

Last week, market volatility intensified, and the uncertainty of the Federal Reserve (FED) cutting interest rates also made investors uneasy, causing the dollar to record its largest weekly gain in a month. The prices of assets favored by retail momentum traders, such as cryptocurrencies and popular stocks in the artificial intelligence sector, experienced significant fluctuations.

John Williams, the Chairman of the Federal Reserve, who is regarded as a close ally of Federal Reserve Chairman Jerome Powell, stated that given the increased downside risks to employment and the alleviation of inflationary upside risks, he believes there is still room for easing monetary policy in the short term. Although traders have increased their bets on a rate cut in December, Federal Reserve officials still have differing opinions on whether to lower rates, with Boston Federal Reserve Bank President Susan Collins stating that she has not yet decided whether to take action.

According to a report by Bloomberg, U.S. officials are in preliminary discussions about whether NVIDIA will sell its H200 artificial intelligence chips to China. This news has boosted risk sentiment on Wall Street.

Bitcoin rebounds after holding the 80,000 level

Bitcoin has recently shown weak performance, dropping to a low of $80,600 on Friday evening, which is a 36% decrease from its October high and just a step away from the low of $74,508 on the tariff liberation day in April. Market confidence is low, with the fear and greed index dropping to single digits at one point. However, surprisingly, last Friday saw a net inflow of funds into the Bitcoin ETF in the United States!

( Bitcoin ETF explodes in volume, put options hedging all at once! Can BTC hold the 80,000 level? )

The overall market capitalization of the crypto market has fallen below 3 trillion dollars, and the fear and greed index remains at an extremely fearful level. Bitcoin has gradually rebounded over the weekend, hovering around 87K before the deadline, while Ether has also slightly risen above 2,800.

As the Thanksgiving holiday approaches, inflation data is being released one after another.

This week coincides with the Thanksgiving holiday, and market trading is expected to be relatively light, but it may also increase market volatility. With the U.S. government returning to normal operations, this week will also see the release of data such as the Producer Price Index (PPI), GDP, and the Personal Consumption Expenditures Price Index (PCE).

( Bitcoin has experienced its worst week, and it may continue to fall during the Thanksgiving holiday?

This article discusses how Bitcoin has rebounded after holding the 80,000 level, with gratitude that the market remains cautious before the holiday. It first appeared in Chain News ABMedia.