Bitcoin Price Faces Risks If Fed Doesn't Cut Rates in December

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Derived from Criptonoticias, analysts from Kaiko Research highlight two major risks that could significantly impact Bitcoin's price. The first is the Federal Reserve's interest rate policy, with a negative correlation between rate cuts and BTC price movements. The second is the growing valuation of the AI sector, which could lead to a sharp market rebalancing. The probability of a 25-basis-point rate cut at the December 9 meeting has risen to 84% on Polymarket, up from 29% last week. If the Fed does not cut rates, the current upward momentum for Bitcoin could slow significantly, as higher rates tend to reduce liquidity and risk appetite.

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