Bitcoin Edges Toward $90,000 as Rate-Cut Expectations Underpin Risk Appetite

Key Moments

Bitcoin Tests Key Resistance Near $90,000

Bitcoin traded higher near the closely watched $90,000 level on Monday, after briefly breaking above it earlier in the session. The advance once again stalled near this threshold, mirroring several unsuccessful rebound attempts seen earlier in the month.

The world’s largest cryptocurrency was last quoted 2.2% higher at $89,663.6 by 02:07 ET (07:07 GMT).

Throughout December, Bitcoin has repeatedly approached and surpassed the $90,000 mark, only to pull back as upward momentum faded. Thin year-end trading activity has contributed to these reversals, with limited volumes making it harder to sustain rallies.

Watching BTC hold this $89.5k area is interesting. We're up 2% on the day, but what catches my eye is how the market's sitting in extreme fear right now. That's usually when smart money starts looking at support levels like that $86.4k zone below us.#Bitcoin #BTC pic.twitter.com/mYzBlFNGyu

— AO Trading (@AOTradingGroup) December 29, 2025

Fed Easing Expectations Support Crypto, But Gains Are Limited

Monday’s move higher came alongside broader strength across financial markets, as investors continued to factor in expectations that the U.S. Federal Reserve will implement additional interest rate reductions in 2026 following its recent cut.

Anticipation of lower interest rates generally benefits risk-oriented assets such as cryptocurrencies by diminishing the relative attractiveness of cash and fixed income and encouraging allocations to higher-return segments.

The latest uptick in Bitcoin also reflected an effort to catch up with gains in other asset classes.

Precious Metals Strength Highlights Alternative Asset Demand

Gold traded near record highs, while silver and platinum reached new peaks as market participants monitored ongoing geopolitical risks. This included U.S.-led diplomatic efforts to end the war in Ukraine, which have not yet produced a definitive resolution.

The strong performance in precious metals underscored sustained appetite for both safe-haven and alternative assets, creating a generally constructive backdrop for the broader crypto market.

Liquidity Constraints and Profit-Taking Cap Bitcoin Rally

Despite the supportive macro tone, Bitcoin’s upside remained constrained. Traders pointed to profit-taking and subdued liquidity as key factors limiting follow-through above the $90,000 level.

Market participants continue to treat $90,000 as a critical psychological and technical barrier that may require more potent catalysts to break decisively.

Institutional engagement, which had bolstered crypto earlier in the year, has been inconsistent. Some funds have shifted to a more cautious stance, opting to wait for important economic data releases scheduled for early in the new year.

Altcoins Post Broad but Modest Advances

Altcoins recorded mostly moderate gains on Monday, moving in tandem with Bitcoin’s advance.

Among major altcoins, world no. 2 crypto Ethereum rose 2.7% to $3,018.92, while world no. 3 crypto XRP advanced 1.5% to $1.90. Solana climbed 2.7%, whereas Cardano and Polygon slipped slightly.

In the meme token space, both Dogecoin and $TRUMP added 1%.