Bitcoin News Today: Fed's Dovish-Hawk Divide Fuels Bitcoin's $85K Rebound

Bitcoin climbed back above $85,000 on Nov. 21, 2025, as renewed expectations of a Federal Reserve rate cut in December spurred a rebound in risk assets. According to market analysis, the surge followed dovish comments from New York Fed President John Williams, who indicated there was still room for monetary easing to balance inflation and employment goals. Bitcoin's price had earlier plummeted below $81,000 amid a broader selloff driven by the Fed's hawkish pivot in October, but Williams' remarks reignited hopes for a policy shift as reports show.

The likelihood of a 25-basis-point rate cut at the Fed's December meeting jumped to 70% on the CME FedWatch tool, up from 39% a day earlier. This shift came as traders priced in a potential easing after Williams said the central bank could adjust its policy stance "in the near term" without compromising its 2% inflation target according to market data. The cryptocurrency's rebound mirrored gains in U.S. stock futures, which rose 0.35% following the comments.

However, not all Fed officials shared Williams' optimism. Boston Fed President Susan Collins countered that monetary policy was "in the right place" and expressed skepticism about further rate cuts, emphasizing the need to maintain restraint amid resilient economic data according to CNBC interview. Her remarks highlighted a growing divide within the Federal Open Market Committee (FOMC), with some policymakers warning that additional easing could risk prolonging inflation or destabilize the labor market as reported.

The conflicting signals from Fed officials underscored the uncertainty surrounding the December meeting. The absence of critical employment data-delayed until Dec. 19 due to a government shutdown-added to the ambiguity. Prominent economist Mohamed El-Erian cautioned markets against overreacting to Williams' comments, noting that the Fed's data-dependent approach could lead to a contentious decision. "Powell still faces an uphill battle convincing the FOMC to avoid a divisive December 11 decision," El-Erian wrote on X as reported.

The mixed messaging from central bankers rippled through global markets. Gold, a traditional safe-haven asset, fell to $4,061 as hawkish commentary and stronger-than-expected job growth data reduced the appeal of non-yielding assets according to market analysis. Meanwhile, the S&P 500 and Nasdaq 100 edged higher, reflecting a tentative optimism about the Fed's potential pivot.

As the December meeting approaches, investors remain split between hopes for easing and fears of prolonged hawkishness. The Fed's ability to balance inflation control with economic stability will likely shape the trajectory of both equities and cryptocurrencies in the coming months according to market analysis.