Bitcoin has declined 24% over the past month, leading traders to search for direction in macroeconomic indicators. Research firm 10x Research suggests investors may be misinterpreting key market signals ahead of the Thanksgiving holiday.
What Happened: Rate Cut Expectations
The cryptocurrency's subdued response to rising Federal Reserve rate-cut expectations reflects a more complicated macroeconomic environment than surface-level indicators suggest, Benzing quotes 10x Research's latest report.
Traders have concentrated attention on December rate-cut odds, which now stand at 84%, but 10x Research argues the tone accompanying any announcement will prove more significant than the cut itself.
Also Read: Kevin Hassett's Fed Chair Candidacy Sparks Debate Over Cryptocurrency Market Future
A third consecutive rate reduction delivered without dovish forward guidance could disappoint markets, according to the firm. The U.S. dollar has also triggered a rare signal that has appeared only five times in Bitcoin's history. Previous occurrences preceded periods of market stress rather than bullish runs.
Optimism surrounding a potential $600 billion liquidity boost from the Treasury may be premature. The last time such an injection occurred, Bitcoin initially dropped and rallied only later, suggesting a lagged rather than immediate impact. The flat price action reflects this disconnect between headline narratives and underlying conditions.
Why It Matters: Holiday Seasonality
10x Research warns that Thanksgiving does not automatically serve as a bullish catalyst for BTC. While the fourth quarter has historically been Bitcoin's strongest period, every significant year-end rally was driven by concrete catalysts rather than holiday seasonality alone.
Between Thanksgiving and Christmas, Bitcoin's performance has been inconsistent, unlike U.S. equities, which typically rise steadily during this period.
The firm identifies a lack of strong catalysts in 2025, contrasting with 2022 and 2023 when clear drivers were present early in the quarter. Sentiment only began improving in mid-October 2024, reinforcing that holiday optimism alone will not push prices higher.
Read Next: Michael Saylor Claims Warren Buffett Would Own All Bitcoin If It Weren't Volatile