Bitcoin Slides Below $88K as Traders Brace for Fed Cut

• Bitcoin drops under $88,000 amid pre-Fed interest-rate jitters.
• Traders brace for December 10's potential 0.25% rate cut.

On December 7, 2025, Bitcoin's price sank below $88,000 amid jitters surrounding the Federal Reserve’s upcoming interest-rate decision, per Cointelegraph. Heightened nervousness among traders saw Bitcoin nearing $87,000 during the downturn. Market participants are anxiously awaiting the Federal Open Market Committee (FOMC) meeting on December 10, expected to play a pivotal role in Bitcoin's immediate trajectory.

Reports indicate most traders anticipate a 0.25% rate cut from the Fed. The CME FedWatch Tool shows an 87% probability of this decision, reflecting significant market confidence. A rate cut would likely inject liquidity into financial markets, potentially lifting risk assets like Bitcoin.

However, analysts have cautioned that divisions within the Fed may lead to no rate cut at all. This uncertainty has fueled Bitcoin’s volatility. Historically, Bitcoin often experiences downward pressure ahead of FOMC announcements as traders exercise caution while awaiting clear guidance on monetary policy.

If the Federal Reserve proceeds with a rate cut and signals further easing, analysts project Bitcoin could recover toward the $100,000 mark. On the other hand, a more hawkish outcome may push prices below $86,000. These contrasting scenarios underscore the Fed's outsized influence on Bitcoin's near-term performance.

The December 10 FOMC decision and statements from Federal Reserve Chair Jerome Powell are expected to set market narratives heading into 2026, particularly for Bitcoin's role as a risk asset amid evolving macroeconomic conditions.

As of December 7, 2025, 16:08 UTC, Bitcoin (BTC) is trading at $89,423.93, reflecting a 0.6% decrease in 24-hour trading volume, according to CoinMarketCap.