Bitcoin Volatility Surges as Hawkish Fed Policy and QT Wind-Down Suppress Risk Appetite

COINOTAG reports that a CryptoQuant analyst suggests that, beginning December 1, the gradual unwind of quantitative tightening could prove mildly supportive for risk assets, including digital currencies. Yet, the Federal Reserve’s hawkish stance ahead of the December policy meeting and a 7 basis point rise in the two-year Treasury yield imply that markets do not anticipate an imminent rate cut. This dynamic caps upside momentum, dampening risk appetite and contributing to elevated Bitcoin volatility. Traders are pricing in a slower normalization trajectory, with price action reflecting evolving expectations for liquidity withdrawal versus macro earnings resilience. In this environment, BTC trading ranges may persist as markets weigh policy tempo against global liquidity conditions, underscoring the need for disciplined risk management and credible crypto indicators.

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