Bitcoin rebounds above $91,000 as December rate cut odds rise

Bitcoin has climbed back above $91,000, with renewed buying interest emerging after a week of losses.

The world's largest cryptocurrency climbed 4.5% over the past 24 hours to trade at $91,755 as of 10:50 p.m. ET Wednesday, according to The Block's price page . Bitcoin had plunged to about $81,000 last week before recovering to around $89,000 earlier today.

"Bitcoin bouncing above $90K reflects a classic oversold snapback; after a brutal drawdown, buyers are stepping in," Vincent Liu, CIO of Kronos Research, told The Block. "The broader risk-on mood, fueled by an 80% chance of a Fed cut in December, is giving markets the push they needed to stabilize and reclaim momentum."

CME Group's FedWatch currently indicates a 84.7% chance that the Federal Reserve would announce a rate cut in December. Fed Chair Jerome Powell had previously indicated that another rate cut in December is uncertain, adding a layer of macroeconomic uncertainty in the market.

HashKey Group Chief Analyst Jeffrey Ding said that the bitcoin rebound mainly reflects a "natural rebound after the recent sharp pullback," rather than a reaction to a single catalyst. "Market structure remains healthy, liquidity is improving, and long-term fundamentals are intact." said Ding.

Alongside Bitcoin, Ethereum and other major cryptocurrencies also rebounded. Ether traded up 2.8% to $3,038, while XRP climbed 1.6% to change hands at $2.22. BNB jumped 3.9% to $897.9, and Solana rose 2.9% to $143.26.

Macro signals

Liu of Kronos said traders are closely monitoring macro signals — including the prospect of a December Fed rate cut — as well as whether institutional flows can provide enough liquidity to sustain the rebound. HashKey's Ding said that traders are also watching ETF flows, and funding and derivatives positioning to assess whether the recovery can hold.

"With excess long positioning cleared and macro turning supportive, crypto had room for a relief move that aligned with the rebound in equities," said Rick Maeda, research analyst of Presto Research. "For crypto sentiment, ETF flows will also be watched, whether the outflows will stabilize or turn positive again."

"Zooming out, broader risk sentiment has actually remained relatively stable," said Jeff Ko, chief analyst of crypto exchange CoinEx. "U.S. equities are at all-time highs, inducing risk-off pressure is limited. Expectations for a December 10 rate cut keep climbing, pointing to a more liquidity-friendly environment ahead."

U.S. stocks rose on Wednesday ahead of the Thanksgiving holiday, reaching their best four-day streak since May, according to Yahoo Finance. The Dow Jones Industrial Average gained 0.67%, while the Nasdaq Composite climbed 0.82%. The S&P 500 added 0.69.

The story has been updated with additional analysts' comments.