Bitcoin Steadies Near $87,000 As Traders Price In Fed Easing — Texas Buys The Dip

• Amid weakness in Bitcoin prices, Texas became the first state to buy Bitcoin, investing $5 million in the digital asset on Nov. 20.
• U.S. equity markets advanced on Tuesday after multiple economic data points suggested inflation might be cooling.
• According to CME Group’s FedWatch tool, traders have overwhelmingly priced in a rate cut in the next Federal Open Market Committee meeting on December 9 and 10.

Bitcoin's price remained above $87,000 in early trading on Wednesday after tepid U.S. economic data bolstered the chances of another rate cut by the Federal Reserve in December.

The apex cryptocurrency rose 0.4% to $87,070.29 at the time of writing, according to CoinMarketCap data, while Ethereum was up 1.3% to $2,911.95 and BNB gained 1% to $856. Among other tokens, Solana gained 1%, and Dogecoin rose 1.9%. XRP was down 0.2%, but it is among the handful of coins up on a weekly basis amid multiple ETF launches.

Fed Rate Cut Odds Rise, But Likely Priced In

U.S. equity markets advanced on Tuesday after multiple economic data points suggested inflation might be cooling. The Department of Commerce on Tuesday also released the September retail sales report, showing a modest increase. The delayed report showed that retail purchases, not adjusted for inflation, rose 0.2% following a 0.6% increase in August. Excluding cars and gas, retail sales edged up by just 0.1%. A Dow Jones estimate forecast a 0.3% increase for the month.

The Producer Price Index (PPI) for September rose 0.3% from a month earlier, according to the Bureau of Labor Statistics. The PPI report, also delayed, showed that the index rose 2.7% over the 12 months ended September, compared with a Dow Jones estimate of 2.8%, as cited by MarketWatch. According to CME Group’s FedWatch tool, traders have overwhelmingly priced in a rate cut in the next Federal Open Market Committee meeting on December 9 and 10.

Analysts believe that Bitcoin is still holding a key support zone. “So far, we're holding a crucial level on Bitcoin, which is the $86K zone. I preferably want to see that hold, in which we're able to be getting an attack to the $90K region. If the monthly closes north of the $90K zone, then this was the low,” said investor Michael Van De Poppe.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Bitcoin was in the ‘bearish’ territory compared with ‘neutral’ a day ago.

However, some traders were still optimistic about a swift rebound. “I believe we go above 200k in 2026, there will be a few more rate cuts, and hopefully the clarity act gets signed, Jerome Powell resigns, and wars are coming to an end,” one user wrote.

Texas Buys The Dip

Amid weakness in Bitcoin prices, Texas became the first state to buy Bitcoin, investing $5 million in the digital asset on Nov. 20, according to Lee Bratcher, President of the Texas Blockchain Council. Bratcher reportedly said that the Texas government will eventually “self-custody Bitcoin,” but as it finishes confirming the process, the initial $5 million “allocation was made with BlackRock's IBIT ETF.”

The Lone Star state announced its decision to create a cryptocurrency reserve in June. However, it could not be confirmed if this move was in tandem with the decision to hold a digital asset treasury. The June bill proposed that assets with a market capitalization exceeding $500 billion be eligible for inclusion in the reserve, a condition satisfied by Bitcoin but not by BlackRock’s IBIT, as per a Cointelegraph report.

In recent times, Abu Dhabi’s sovereign wealth fund and Harvard University’s investment arm have also added IBIT to their holding. "Pretty sure that's the only ETF to ever be owned by all three. More wild stuff for a not-yet-even-two-years-old fund," Bloomberg senior ETF analyst Eric Balchunas said.

Also See: Strategy’s Worst Month Since 2024 Pushes Its Market Cap Below Its Bitcoin Holdings — But Retail Bulls Are Unfazed

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