Boosted by reports that the Federal Reserve may cut interest rates and U.S. officials might allow Nvidia to sell AI chips to China, market sentiment slightly improved on Friday. Bitcoin's recent performance has been weak, dropping to a low of $80,600 late Friday evening, down 36% from its October high. The overall cryptocurrency market capitalization has fallen below $3 trillion, with the Fear and Greed Index still lingering at extreme fear levels. Bitcoin slowly rebounded over the weekend, hovering around $87K as of the deadline, while Ethereum (ETH) also rose slightly above $2,800.

Interest Rate Cut Expectations and Potential Nvidia Chip Sales to China Boost Market

Last week, market volatility intensified, and uncertainty over the Fed's interest rate cuts made investors uneasy, leading the dollar to post its largest weekly gain in a month. Assets favored by retail momentum traders, such as cryptocurrencies and popular AI stocks, experienced sharp price fluctuations.

John Williams, President of the New York Federal Reserve and a close ally of Fed Chair Jerome Powell, stated that given the increased downside risks to employment and eased upside risks to inflation, there is still room for monetary policy easing in the short term. Although traders have increased bets on a December rate cut, Fed officials remain divided on whether to cut rates, with Boston Fed President Susan Collins saying she has not yet decided on taking action.

According to Bloomberg reports, U.S. officials are in preliminary discussions about whether Nvidia can sell its H200 AI chips to China, which has helped improve risk sentiment on Wall Street.

Bitcoin Rebounds After Holding Above $80,000 Mark

Bitcoin's recent performance has been weak, reaching a low of $80,600 late Friday evening, down 36% from its October high and just a step away from the $74,508 low on April's tariff liberation day. Market confidence is fragile, with the Fear and Greed Index once dropping to single digits. Surprisingly, however, U.S. Bitcoin ETFs saw net inflows last Friday!

The overall cryptocurrency market capitalization has fallen below $3 trillion, with the Fear and Greed Index still at extreme fear levels. Bitcoin slowly rebounded over the weekend, hovering around $87K as of the deadline, while Ethereum also rose slightly above $2,800.

Thanksgiving Holiday Approaches, Inflation Data to Be Released Soon

This week coincides with the Thanksgiving holiday, with market trading expected to be light, but it could also amplify market volatility. As the U.S. government resumes normal operations, data such as the Producer Price Index (PPI), GDP, and Personal Consumption Expenditures (PCE) price index will be released this week.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.