TL;DR
- Bitcoin momentum: Bitcoin climbed 3.2% to $92,111, reflecting echoes of past cycle rebounds. Analysts highlight similarities to 2013, 2017, and 2021 recoveries.
- Altcoin recovery: XRP surged to $2.09, and Cardano rose to $0.43, reversing recent downtrends. BNB and Solana also posted gains, signaling resilience across major altcoins.
- Liquidity risks: Analysts warn that, in the absence of liquidity inflows, Bitcoin could remain between $55,000 and $70,000 into 2026. Open interest in futures has collapsed, raising concerns of apathy or capitulation.
Cryptocurrency markets opened the week with a cautious rebound, as Bitcoin, Ethereum, XRP, and Cardano posted modest gains ahead of the Federal Reserve’s expected rate cut. The uptick, though tentative, reflects fragile sentiment across global markets, with analysts warning that liquidity gaps and bearish indicators could temper momentum. Still, the rally has sparked renewed optimism, particularly as major altcoins show resilience after weeks of selling pressure.
Bitcoin and Ethereum Build Momentum
Bitcoin rose 3.17% over the past 24 hours, trading near $92,111, while Ethereum added 3.89% to reach $3,159. Both assets strengthened during early Asian trading, supported by expectations of a 25-basis-point Fed cut. Analysts noted similarities to prior cycle recoveries in 2013, 2017, and 2021, suggesting the current trajectory could mirror historic rebound phases. Futures interest, however, has dropped to its lowest level this year, signaling investor caution despite the price lift.
XRP and Cardano Reverse Downtrends
Ripple’s XRP climbed 2.8% to trade near $2.09, extending gains after prolonged market pressure. Cardano also reversed recent losses, rebounding from $0.40 to $0.43. These moves highlight renewed strength among altcoins, with BNB adding 2.13% to $909 and Solana surging 4.7% to $138. Despite the recovery, CryptoQuant’s Bull Score fell to zero, its lowest since 2022, underscoring lingering fear among investors in the crypto market even as prices edge higher.
Liquidity Concerns Cloud Outlook
CryptoQuant CEO Ki Young Ju cautioned that fresh liquidity inflows remain absent, leaving Bitcoin vulnerable to consolidation between $55,000 and $70,000 in the coming year. Without macro liquidity, bearish cycles could persist. Open interest in Bitcoin futures has dropped sharply, which some analysts interpret as either capitulation or apathy. Both scenarios, however, may present discounted entry points for opportunistic buyers.
Longer-Term Optimism Emerges
K33 Research offered a more optimistic view, pointing to potential 401(k) rule changes in 2026 that could allow retirement accounts to allocate to Bitcoin. While legislative shifts may take months to materialize, analysts believe such developments could strengthen long-term demand. For now, the rebound remains fragile, but the combination of Fed policy shifts and structural reforms may set the stage for a healthier market cycle.
