Bitcoin hit a weekly low as the Fed "collectively turned dovish"; traders and analysts are optimistic about a short-term bottom formation.

On November 23, Bitcoin has been continuously falling since reaching a high of $96,000, hitting a low of $80,600 around 20:25 Beijing time on November 21, Friday. That evening, several Fed officials spoke, releasing favourable information that reversed the market's prior view that “there will almost certainly be no interest rate cuts in December.” The first speech almost coincided with the low point of $80,600, with New York Fed President Williams stating that given the current slightly tight policy, the Fed may still cut rates in the short term. The inflation process is stagnating, but it is expected to reach the 2% target by 2027. Fed Governor Mulan indicated that the impact of the non-farm payrolls released the previous Thursday was “clearly dovish,” and that insufficient data does not mean the Fed lacks predictions. Fed Vice Chairman Jefferson also stated that he believes the current rise in US stocks related to artificial intelligence is unlikely to repeat the collapse scenario of the late 1990s internet bubble, mainly because today's AI-related companies are more mature and have real profitability. Fed's Logan stated that the Fed's balance sheet is expected to resume growth soon. After several officials “collectively turned dovish” to save the situation, the three major US stock indexes opened higher, and Bitcoin began to rebound simultaneously, with the market believing that the probability of a rate cut in December quickly rose above 70%. As of the time of writing, Bitcoin's rebound had once broken through $86,000, with several market analysts and traders expressing their views that “the short-term bottom has been seen,” including well-known Chinese crypto analyst Banmuxia, who stated that $80,500 can basically be confirmed as an important low point in this bear market, and could even be the lowest point, but the bear market has not ended, and the market may still undergo “bottom consolidation.” The crypto trading indicator analysis platform CoinKarma pointed out that on November 21, the spot trading volume at the daily chart close of BTC reached the highest volume recently across several trading platforms, indicating that a significant handover behavior is occurring in the market. This type of “large handover, higher trade volumes stopping the fall” structure is a typical short-term bottom signal. Placeholder VC partner Chris Burniske stated that the crypto assets market seems ready for a rebound, until it is enough to make people bullish again, before welcoming the next round of big dump.