TL;DR
- Bitcoin reclaimed the $91,000 level, driven by a shift in market expectations for a December Federal Reserve rate cut, now estimated at 85% probability.
- The rally triggered over $240 million in short liquidations, significantly more than long liquidations.
- Analysts highlight resistance near $95,000 and anticipate that macroeconomic sentiment, rather than crypto-specific factors, is currently shaping Bitcoin’s trajectory.
Bitcoin’s price momentum gained strength this week as improving risk sentiment pushed the cryptocurrency past $91,000, according to a report by Singapore-based trading firm QCP Capital. The move started after Bitcoin hit an intraday low of $86,400 and has since maintained gains, rising over 5% in 24 hours and reaching around $91,500, per CoinGecko data. Trading volumes have also increased, reflecting higher investor engagement across major exchanges, suggesting continued attention from both retail and institutional participants.
Improving Risk Sentiment Supports Bitcoin Rally
Market analysts attribute the rebound to broader financial market optimism rather than crypto-specific catalysts. The S&P 500 recorded a fourth consecutive up-close daily candlestick, aligning with Bitcoin’s bullish retest. The uptick coincides with markets pricing in an 85% probability of a 25-basis-point Fed rate cut in December, according to CME FedWatch, reflecting a cautious but positive shift in investor risk appetite.
The recovery caught short sellers off guard, leading to $241 million in short liquidations in the past 24 hours, more than triple the volume of long liquidations, according to Coinglass. Market participants noted a noticeable increase in derivative trading activity, indicating that the rally is being closely monitored by professional traders, which underscores the increasing sensitivity of crypto markets to macroeconomic signals and institutional positioning.
Institutional Flows Indicate Rangebound Potential
Options data suggests institutional investors are positioning for limited price movement in the near term. This week saw $2 billion in flows, with long call condor strategies signaling expectations that Bitcoin may remain range-bound. The strategy allows maximum gains if Bitcoin trades between the two middle strike prices at expiry, while losses occur outside this range.
QCP analysts also noted that ETF-related distribution could hinder rallies beyond $95,000, while the $80,000 to $82,000 zone continues to act as critical support. Despite the Fed’s cautious tone, with four officials signaling support for rate cuts and six opposing, Bitcoin’s trajectory is closely tied to broader market sentiment.
Overall, Bitcoin’s rebound past $90,000 highlights the influence of macroeconomic catalysts on crypto markets.
