Bitcoin started the week with renewed momentum, breaking back above the technically important $90,000 level. The move is being fueled by growing optimism around potential interest rate cuts in the United States next year, which has improved sentiment across risk assets. Market analysts are now closely watching whether the recovery can extend toward year-end.
Specifically, Bitcoin climbed above $90,000, briefly trading at $90,535 on Monday afternoon—its highest level since December 13. Most recently, BTC was quoted around $90,063. While the cryptocurrency remains well below the recent high of $94,652 recorded on December 9, the renewed upside momentum is widely seen as a constructive technical signal.
Crypto analyst Nikolas Keßler from the Bitcoin Report commented on the move:
“Thanks to expectations of further monetary easing and increasing regulatory clarity in the U.S., market participants are approaching the new year with renewed confidence. In the short term, however, volatility in the crypto market is likely to remain elevated.”
Institutional Investors Step Back In
Institutional investors also appear to be re-entering the market ahead of the year-end period. Data from Capriole Investments shows that professional investors accumulated more Bitcoin last week than was newly issued through mining. This marks a notable shift after six consecutive weeks in which miner supply exceeded institutional demand.
According to Keßler, positioning in the derivatives market also points to a rising risk appetite among investors, reinforcing the bullish short-term outlook.
Outlook
Bitcoin’s rebound above $90,000 suggests that buyers are once again willing to defend key levels. If sentiment across crypto markets remains supportive, the chances are good that the recovery could extend into the final weeks of the year. Nevertheless, analysts caution that macroeconomic uncertainty and low holiday liquidity could continue to drive sharp short-term price swings.
For investors, the current environment highlights a familiar dynamic: renewed optimism tied to monetary policy expectations, counterbalanced by the potential for heightened volatility as the year draws to a close.
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