Bitcoin has surged past $90,000 for the first time in nearly a week, driven by improving risk sentiment and an 85% chance of a Federal Reserve December rate cut. This rebound follows a low of $86,400, with the cryptocurrency now trading near $91,500 amid broader market optimism.
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Bitcoin up 5.3% in 24 hours: The cryptocurrency reclaimed $90K, triggering $241 million in short liquidations as bears were caught off guard.
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Improving risk sentiment fueled the uptick, aligned with the S&P 500’s fourth consecutive daily gain.
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85% probability of Fed rate cut in December, per CME FedWatch tool, with similar sentiment on prediction market Myriad at 83%.
Discover why Bitcoin price is surging past $90K amid 85% odds of a Fed rate cut. Explore market risks and key supports in this crypto update—stay informed on Bitcoin trends today.
What is driving Bitcoin’s surge past $90,000?
Bitcoin’s surge past $90,000 stems from heightened buying pressure and broader market risk appetite, rather than crypto-specific events. According to a report from Singapore-based trading firm QCP Capital, the cryptocurrency hit an intraday low of $86,400 before rebounding steadily, now trading around $91,500 as per CoinGecko pricing data. This 5.3% gain over the past 24 hours reflects alignment with traditional markets, particularly the S&P 500’s recent uptrend.
How are Federal Reserve rate cut expectations influencing Bitcoin’s momentum?
The probability of a Federal Reserve interest rate cut in December has risen to 85%, according to the CME FedWatch tool, boosting investor confidence and risk assets like Bitcoin. This shift follows balanced commentary from Fed officials, with four signaling support for easing while six remain opposed, as detailed in QCP Capital’s analysis. Markets on prediction platform Myriad, owned by Dastan, echo this with an 83% chance of a 25 basis point cut, highlighting Bitcoin’s growing tie to macroeconomic factors. Short liquidations reached $241 million in the last 24 hours via Coinglass data—over three times the long liquidations—underscoring the sudden bear squeeze. QCP analysts note that Bitcoin now mirrors broader financial market sentiment, where macro events dictate price action more than isolated crypto developments.
Frequently Asked Questions
What risks could derail Bitcoin’s current rally above $90,000?
Key risks include mixed Fed signals, with neutral and opposing voices potentially tempering easing expectations. Broader concerns involve potential delistings like MicroStrategy from the S&P 500, which could spark selloffs. Institutional options flows totaling $2 billion this week, favoring range-bound strategies, suggest limited upside beyond $95,000 due to ETF distributions, per QCP Capital insights.
Where might Bitcoin find support if the price dips from $91,500?
If Bitcoin’s price pulls back from $91,500, the $80,000 to $82,000 range serves as a critical support zone following recent market washouts. This level aligns with historical patterns and institutional positioning, offering a buffer against further downside while rate cut hopes persist. Analysts at QCP Capital emphasize monitoring macro indicators for sustained stability.
Key Takeaways
- Macro-driven rebound: Bitcoin’s climb past $90K ties directly to risk-on sentiment and Fed rate cut probabilities.
- Liquidation impact: $241 million in shorts wiped out highlights vulnerability in bearish positions amid the 5.3% daily gain.
- Range-bound outlook: Options data points to consolidation between $80K-$95K supports and resistances—investors should watch Fed updates closely.
Conclusion
Bitcoin’s surge past $90,000 underscores its sensitivity to Federal Reserve rate cut expectations, with an 85% December probability fueling the latest momentum. While QCP Capital and CME FedWatch data paint a cautiously optimistic picture, ongoing risks from Fed divisions and institutional flows warrant vigilance. As crypto markets evolve in tandem with traditional finance, staying attuned to these dynamics positions investors for informed decisions in the months ahead—monitor key supports and upcoming policy signals for potential opportunities.
