Bitcoin Climbs Above $91,000 as Traders Hold to Fed Rate-Cut Outlook

Key Moments

Bitcoin Rebounds After Brief Pullback

Bitcoin started the week on a firmer footing, advancing on Monday as traders continued to bet that the U.S. Federal Reserve will move ahead with an interest-rate cut this week.

The cryptocurrency’s advance came after a modest decline over the prior week, during which prices briefly dropped below $84,000. That pullback followed sharp losses in November and kept market participants cautious.

By 02:08 ET (07:08 GMT), Bitcoin was last quoted 2.2% higher at $91,398.6, with upside capped by ongoing wariness among investors reacting to mixed signals from Federal Reserve officials.

The next execution plans for $BTC are quite straightforward.

We're treating this current consolidation as a classic **range** play on the 2h/4h timeframe – nothing fancy, just respecting the structure we've built after that sharp drop from the highs.

**Range boundaries right… pic.twitter.com/4yanHTFvUr

— StefanB (@Stefan_B_Trades) December 8, 2025

Fed Policy Expectations Underpin Risk Appetite

Expectations for easier monetary policy remained intact after a series of softer U.S. economic readings in recent weeks. Investors currently see an 87% likelihood that the Fed will lower its benchmark rate by 25 basis points at the meeting concluding on Dec. 10, amid signs of moderating inflation.

On Friday, the latest reading of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, showed a 0.2% increase month-on-month. The annual rate slowed to 2.8%, reinforcing the perception that inflation pressures are gradually easing.

While a move toward lower interest rates is generally viewed as supportive for risk-sensitive assets, sentiment has been tempered by inconsistent public commentary from Fed policymakers in recent weeks, which has clouded the outlook for how quickly and how far rates may be reduced in 2026.

Bitcoin’s Move in Context of Fed Pivot Hopes

Bitcoin began to accelerate higher toward the end of 2024 as expectations built that the Fed would pivot away from its prior tightening stance. Anticipation of looser financial conditions has been a key driver for the token, with lower borrowing costs typically weighing on the U.S. dollar and enhancing the relative appeal of non-yielding assets such as Bitcoin.

Whether the current upswing can be sustained will depend heavily on incoming macroeconomic data and the Fed’s policy signals. Market participants are now focused on the central bank’s policy statement and remarks from Chair Jerome Powell later this week, which could refine expectations for the path of rates.

Altcoins Track Bitcoin in Tight Ranges

Broader cryptocurrency markets moved higher alongside Bitcoin, although trading remained largely rangebound across major tokens.

Most major altcoins moved in tandem with the broader market. Ethereum, the second-largest cryptocurrency by market ranking, advanced 3% to $3,127.92. XRP, the third-largest, rose 2.5% to $2.08.

Solana and Cardano each added 2%, while Polygon saw little net change over the session. Among meme-related tokens, Dogecoin gained 1.5%, whereas $TRUMP slipped 0.5%.