Bitcoin Reclaims $91,000 as December Rate Cut Expectations Strengthen

Bitcoin (BTC) reclaimed $91,000 on Thursday for the first time since November 20, rising around 12% after dropping near $80,000 last week. The rebound aligned with growing expectations of a possible Federal Reserve rate cut next month, helping lift overall market sentiment.

The shift in sentiment is reflected in Polymarket data. The odds of a December rate cut jumped from about 27% to 85% within days. The rapid change came despite earlier caution from Fed Chair Jerome Powell, who signaled uncertainty over immediate policy easing.

Bitcoin Rebounds as Institutions Return

Bitcoin had recently fallen over 30% from its all-time high around $126,000, driven by leveraged liquidations and aggressive selling. The correction erased more than $1 trillion from the crypto market, shaking sentiment and pressuring major participants.

The sell-off also affected spot BTC ETFs, which saw significant outflows totaling $3.79 billion throughout November. Yet, market dynamics began to shift on November 25, when inflows resumed, led by Fidelity’s $129 million addition. The inflow indicated renewed confidence from institutional players, signaling a potential turning point for bitcoin amid broader market turbulence.

Supporting this view, Fundstrat’s Tom Lee highlighted rising trading volumes and improving momentum in recent days. He suggested that if the apex coin can overcome resistance around $93,000, it could move past $100,000 before year-end. The technical strength, according to Lee, reinforces the notion that the market may be entering a phase of recovery rather than prolonged stagnation.

Whales Buy While Retail Steps Back

In addition to the bullish sentiment fueled by the surge in rate cut expectations, blockchain analytics firm Santiment reported encouraging on-chain activity. Wallets holding at least 100 BTC have increased by 0.47% since November 11, suggesting that large holders are accumulating. At the same time, addresses with 0.1 BTC or less have been declining, signaling ongoing retail capitulation.

Analysts note that this pattern has historically supported long-term price stability during major corrections. It indicates that stronger hands are gradually taking control of supply, which can help sustain a market recovery even after sharp pullbacks.

The improving market structure and accumulation by larger holders extended gains beyond BTC, lifting major altcoins as sentiment steadied. Ethereum traded above $3,000, BNB reached $900, and XRP stood at $2.24. Solana climbed to $144, reflecting a broad-based rebound across the crypto market.

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