Bitcoin Trades at $90,060 Amid Market Uncertainty and Fed Rate Cut

Bitcoin is currently trading in the low-$90,000s after reaching an all-time high of $124,000–$126,000 in October and losing about a third of its value.
Pseudonymous crypto expert plur daddy suggests the market might be in an extended consolidation phase rather than a bull or bear market, similar to gold's behavior from April 2020 to March 2024.
Sellers have been active when BTC reaches the $120k range, driven by factors like liquidity and emerging risks.
Plur believes that the lows may be established, with liquidity conditions set to improve moderately, but warns against betting on a significant market regime change.

Bitcoin Market Dynamics

The recent FOMC meeting resulted in a 25-basis-point rate cut, setting the Fed funds target at 3.50–3.75%.
The Fed announced $40 billion per month in "reserve management purchases" of short-dated Treasuries, starting December 12.
There is debate over whether these actions constitute a new round of QE. Some argue it's more akin to "QE-lite," potentially benefiting risk assets like Bitcoin.

Market analysts are divided on the nature of the Fed's actions, with some viewing it as money printing and others seeing it as a technical measure to maintain liquidity. The current situation suggests Bitcoin may continue to trade within a range for the foreseeable future, reflecting both the "debasement trade" and the aftermath of previous price surges.

At press time, BTC traded at $90,060.