Bitcoin’s been creeping higher over the weekend. It got back above $91,000 on Sunday, sitting around $92,050 after bottoming out near $85,000 earlier this month. That’s a decent bounce, up about 1.8% on the day and over 5% for December so far.
Everyone’s eyes are on two major events this week. Wednesday brings the Fed’s final interest rate call for 2025, and Thursday we get the latest employment numbers. Word on the street is jobless claims might jump to 30,000 from 191,000 last time, which could push the Fed toward cutting rates.
The markets still pretty nervous though. That massive $19 billion liquidation event in October really shook things up. Ryan McMillin from Merkle Tree Capital mentioned liquidity’s still weak because order books got destroyed and market makers aren’t rushing back in yet.
Michael Wu at Amber Group said rate expectations hit crypto way faster than traditional markets, especially over in Asia. A lot of trading desks are spreading their money across both centralized and decentralized platforms now to handle the volatility better.
Since the Fed stopped quantitative tightening on December 1st, McMillin’s thinking we’re set up for a rally. He reckons the rate cut could be what gets things moving again.
Conclusion
Bitcoin’s gradual recovery above $91,000 shows cautious optimism returning as traders position for potential Fed rate cuts, though October’s liquidation aftermath continues limiting aggressive positioning despite improving fundamental conditions.
Also Read: Solana Struggles
