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Bitcoin Updates: Federal Reserve's Softer Stance and ETF Investments Drive Bitcoin's Recovery to $91,000

Bitcoin Updates: Federal Reserve's Softer Stance and ETF Investments Drive Bitcoin's Recovery to $91,000

Bitget-RWA2025/11/27 04:22
By:Bitget-RWA

- Bitcoin surged above $91,000 in December 2025 as Fed rate-cut odds hit 70%, driven by dovish signals and ETF inflows reversing outflows. - Technical indicators showed oversold RSI levels and seller exhaustion, while altcoins like XRP/ZEC jumped 7.7%-17% amid $2.95T market cap growth. - Institutional flows favored Solana ETFs and altcoin products, but MSCI's crypto exclusion policy sparked backlash from advocates like Michael Saylor. - Retail fear metrics and $605M liquidations highlighted fragility, yet

In early December 2025, Bitcoin climbed back above $91,000 as expectations for a Federal Reserve rate cut soared to 70%, reigniting bullish sentiment across the crypto sector. This upward move came after Bitcoin bounced from "extremely oversold" conditions on the relative strength index (RSI), a tool that

. Over $206 million in liquidations over the weekend and limited market depth led traders to point to signs of sellers losing momentum, helping regain important support zones. At the same time, alternative cryptocurrencies such as and (ZEC) respectively, as the overall crypto market value rose 3.29% to $2.95 trillion.

This price movement coincided with broader economic changes, as

a possible rate cut in December to counter slowing inflation and a softening job market. This more accommodative stance reduced borrowing costs and boosted liquidity for riskier assets, with in net inflows on Friday, reversing a multi-week trend of outflows. bullish technical patterns, including Bitcoin's test of its 100-week moving average and a Tom DeMark buy signal for XRP, hinting at potential further upside.

Bitcoin Updates: Federal Reserve's Softer Stance and ETF Investments Drive Bitcoin's Recovery to $91,000 image 0
Institutional investment flows were also crucial. spot ETFs attracted $55 million in new funds for the 16th day in a row, while ETFs saw $37 million withdrawn, highlighting a shift toward smaller-cap tokens . BlackRock’s (IBIT) received $60.61 million in inflows after experiencing its largest redemptions since inception, and Grayscale’s Dogecoin ETF (BWOW) along with the XRP ETF (GXRP) reflected increasing institutional interest in altcoins .

Yet, not all market developments were positive.

such as Strategy from MSCI indexes in January 2026 sparked criticism from Bitcoin supporters, with some urging a boycott of JP Morgan and legal action against the bank. that this change would force companies to either cut back on crypto assets or lose passive investment, which could unsettle prices.

Sentiment among retail investors was divided. The Crypto Fear and Greed Index dropped to 11, indicating high levels of fear, while

underscoring the market’s vulnerability. Nevertheless, pointed to underlying demand, with Bitcoin trading near $88,000 and Ethereum exceeding $2,900.

Looking forward, experts remain cautiously upbeat. With the Fed’s December meeting on the horizon and spot ETFs broadening the range of crypto investment products, the market is approaching a pivotal moment. Although resistance around $90,000 and year-end profit-taking may limit gains in the short term,

indicate that the longer-term bullish outlook is still in place.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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