Bitcoin's Wild Ride: A Rollercoaster of Gains and Losses

Bitcoin had a crazy day, going up and down like a rollercoaster. It started strong, reaching almost $89, 300, but then it dropped sharply to $85, 500 in just a couple of hours. By the end of the day, it settled around $86, 000, which is still a bit lower than the day before. The early boost in Bitcoin's price came when the U. S. reported that inflation had dropped to 2. 7%. This made people think the Federal Reserve might cut interest rates in January. Traditional markets like the Nasdaq also went up because of this news. But not everyone was convinced. Some experts pointed out that the inflation numbers might be misleading because they didn't include rent and housing costs properly. This made people doubt the Fed's plans, and the markets started to wobble again.Right now, the chances of a rate cut in January are still low, at only 24%. This shows that the market is not fully convinced by the recent inflation data. In the world of crypto options, traders are being cautious. Bitcoin options suggest that people think the price will stay between $85, 000 and $100, 000 for now. They are not expecting a big breakout soon. On the other hand, Ethereum options show more uncertainty. Traders are setting support levels around $2, 700 to $2, 800 but are also selling calls above $3, 100, which means they are protecting themselves against big gains. Overall, the crypto market is showing mixed feelings. While Bitcoin seems to have some support, Ethereum traders are more cautious and are hedging their bets.