Bitcoin Climbs Toward $88K, Ethereum Jumps — But BlackRock’s Crypto ETF Logs Biggest Outflow On Record In November

• According to a Wall Street Journal report, San Francisco Fed President Mary Daly backed the idea of a further rate cut at the next Fed policy meeting on December 9-10.
• According to CME Group’s FedWatch tool, more than 81% traders have priced in a rate cut at the upcoming Federal Open Market Committee meeting.
• The iShares Bitcoin Trust (IBIT) of BlackRock has logged the largest monthly outflows on record, $2.35 billion, in November so far.

Bitcoin and major cryptocurrencies advanced in early trading on Tuesday as hopes of another interest rate cut by the U.S. Federal Reserve rose after San Francisco Fed President Mary Daly expressed support for another rate cut.

The apex cryptocurrency rose 0.5% to $87,617.88 at the time of writing, according to CoinMarketCap data, while Ethereum was up 2.5% to $2,906.34. Among other tokens, Dogecoin rose 2.5%, Solana gained 4.4%, and XRP rose over 7.5%, amid several new ETF listings.

Fed’s Daly Concerned About Labor Market

According to a Wall Street Journal report, Daly backed the idea of a further rate cut at the next Fed policy meeting on December 9-10, as she felt a labor market deterioration would be harder to manage and that an uptick in inflation would be more likely.

“On the labor market, I don’t feel as confident we can get ahead of it,” she reportedly said.“It’s vulnerable enough now that the risk is it’ll have a nonlinear change.” She added that the inflation spike is lower risk, given that tariff-driven cost increases have been more muted than anticipated earlier this year. While Daly does not have voting powers on policymaking, her views have rarely contradicted those of Fed Chair Jerome Powell.

According to CME Group’s FedWatch tool, more than 81% traders have priced in a rate cut at the upcoming Federal Open Market Committee meeting. The odds already rose last week after Federal Reserve Bank of New York President John Williams said there is room for further adjustment. He stated that while it is necessary to bring inflation back to the Federal Reserve’s long-term goal of 2%, it is equally important to do so without creating undue risks to the goal of maximum employment.

“Consolidation inside $80k to $90k is rebuilding. A push back into US$90k to US$96k would lift odds of retesting highs if selling pressure eases,” BTC Markets analyst Rachael Lucas said on X.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Bitcoin was in the ‘neutral’ territory at the time of writing.

“Congratulations to everyone who has been buying in the 80s,” one user said.

Record ETF Outflows

The recent slump in cryptocurrency prices has led some investors to withdraw their exposure from funds that own digital assets. The iShares Bitcoin Trust (IBIT) of BlackRock, the biggest among them, has logged the largest outflows on record of $2.35 billion in November so far, according to SoSoValue data, over three times the next-largest decline in February this year.

In total, spot Bitcoin ETFs have seen outflows of over $3.7 billion, and spot Ethereum ETFs have logged outflows $1.64 billion in November. However, Bloomberg ETF analyst Eric Balchunas stated that it might not necessarily mean that investors are moving away from IBIT.

“Short interest has plummeted. It wasn't exactly high to begin with, at 2% of shares, but it's almost back to where it was in April,” he said on X. “Traders tend to short into strength and cover in downturns, according to S3 Partners, who added in all ETFs for context.”

Also See: Why Did Fluence Energy Stock Soar Nearly 15% After-Hours?

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