Bitcoin (BTC) has remained steady above $90,000 after a volatile week shaped by shifting calls from major Wall Street institutions. As per a report by Reuters, fresh forecasts from JP Morgan and Goldman Sachs point toward a possible rate cut in December. 

As a result, the odds for a 25-basis-point interest rate cut during Fed’s December meeting have risen to 86% as market participants price in for the rate cut. 

Fed Signals Trigger Market Realignment

JP Morgan’s new note triggered the first wave of momentum after the bank stated that the Federal Reserve is now expected to deliver a 25-basis-point cut at the December 9–10 meeting. This marks a shift from the bank’s earlier stance whereby it warned of a potential rate cut delay till January 2026. 

The shift in stance by JP Morgan follows the release of the delayed September jobs report, which showed a modest 119,000 payroll increase. October’s absence of data has left Fed officials without critical guidance.

As per the Reuters report, New York Fed President John Williams highlighted the difficulty of operating without a full economic picture. His comments added to the view that policymakers are essentially moving into the next meeting with limited clarity. Nonetheless, Wall Street reacted by adjusting short-term expectations, pushing traders toward risk assets that benefit from liquidity windows. 

Goldman Sachs also echoed the same view, stating that the September jobs report likely sealed the case for a December cut. With traders now pricing in for the rate cut, the odds for a 25-bps interest rate cut in December have surged to 86% as per the CME FedWatch tool. 

At the same time, reports that Kevin Hassett may replace Jerome Powell added another layer of speculation. 

Bitcoin Stabilizes as Traders Rotate Back Into Crypto

Bitcoin has absorbed the shift faster than other major assets. The coin had spent several weeks in a risk-off decline driven by fears of a prolonged US government shutdown and a return to tighter policy. However, upon the resurfacing of possibility for a rate-cut next month, BTC has found support around the $90,000 zone and started trading in a steadier range. 

As of this writing, data by CoinMarketCap shows that BTC is trading at $91,611, up 1.79% over the last 24 hours. On the weekly timeframe, the coin is up over 5% as the market recovers from a weekly low of $81,000.

Bitcoin’s steady action above $90,000 highlights that the disappearance of political uncertainty has allowed technical levels to hold more convincingly. Selling pressure has also dropped significantly allowing Bitcoin to remain steady. 

Many traders have also interpreted the new forecasts by JP Morgan and Goldman Sachs as a sign that a short-term reversal could emerge. This has changed the broader tone across the crypto market, shifting g sentiment to bullish after weeks of bearish sentiment. 

What the Next 3–6 Months Could Hold for Bitcoin

The December rate decision now stands as the major catalyst heading into the year-end. A 25-basis-point reduction would result in upward pressure on Bitcoin and would potentially trigger another test of the new resistance points. Traders expect that a formal cut would justify the already apparent repricing of risk assets already seen this week.

But a larger narrative might play out in early 2026, should Kevin Hassett take over as Fed Chair. A Hassett-led Fed could mark the end of the “regulation by enforcement” era that has weighed on U.S crypto companies.

Markets are already pricing in this possibility as traders look beyond December’s decision. If both the interest rate cut and the Fed leadership change materialize, Bitcoin could enter 2026 with a strongest macro setup.