The potential Christmas rebound of Bitcoin depends on the Federal Reserve's interest rate decision!

The year-end rebound is often referred to as the "Christmas rally." In previous years, there have indeed been rebound rises in Christmas month. Currently, due to improved liquidity conditions and the possibility of the Federal Reserve cutting interest rates reaching 90% in early December, the crypto market may be poised for a rebound.

Despite positive macroeconomic signals, overall market sentiment remains dominated by fear. Institutional and retail investors are still hesitant, failing to deploy capital, and the market is in a stalemate until ETF inflows and other institutional signals confirm stability. Therefore, the upcoming interest rate decision by the Federal Reserve will be crucial. If the Federal Reserve cuts interest rates on December 10 and ends quantitative tightening, Bitcoin may experience a short-term rise in the "Christmas rally," provided there are no significant geopolitical shocks.

Additionally, speculation about Hassett being appointed as the next Federal Reserve Chair may introduce a more dovish stance, which could positively impact the cryptocurrency market to some extent.

There is a variable; the Bank of Japan's interest rate hike in December can already be said to be a done deal, and when the Federal Reserve cuts rates, the impact of the yen's rate hike may further reduce the overall volatility of the cryptocurrency market.