The cryptocurrency market is experiencing a significant rebound as Bitcoin has surged back above the crucial $90,000 mark for the first time in nearly a week. This rise follows a tumultuous period where Bitcoin plummeted from its record high of $126,080 in October to approximately $81,000 late last week. The current price of $90,035, as reported by CoinGecko, has reignited hopes among investors that the market may be emerging from a potential bear cycle.
This recovery is not driven by the typical retail investor frenzy but rather by a broader rally in risk assets, including technology equities. The reduction in market volatility has provided professional traders the confidence needed to push prices higher. A key factor in this upward movement is the recent renewed interest in the US Bitcoin Exchange-Traded Fund (ETF) offered by BlackRock, which has seen fresh inflows, reversing a trend of redemptions that indicated declining institutional interest.
Market Dynamics and Institutional Interest
The market’s optimism is further supported by speculation regarding a potential third interest rate cut by the Federal Reserve in December. With bond futures traders now assigning a 79% chance of a quarter-point reduction, this shift is seen as a macroeconomic tailwind for digital assets. Typically, cryptocurrencies perform well when interest rates are lowered, as this diminishes the appeal of safer assets like bonds, prompting investors to seek higher returns in riskier markets.
The recent decline in Bitcoin prices was primarily attributed to decreasing interest from institutional investors and uncertainty surrounding the Federal Reserve’s monetary policy. Following two interest rate cuts in September and October 2025, the market has been rife with speculation about the Fed’s next moves. Investors had withdrawn over $3.5 billion from Bitcoin ETFs in November, mirroring the mass sell-off seen earlier in the year.
The renewed inflows into the BlackRock ETF signal a potential shift in institutional sentiment, suggesting that the recent de-risking period may be coming to an end. Analysts are now closely monitoring whether this newfound strength can sustain itself through the Thanksgiving holiday and into December.
Thanksgiving Trends and Future Outlook
Historically, Bitcoin’s performance around Thanksgiving has been mixed, with an average return of -0.8% on the holiday over the past decade. However, the current pre-holiday rally, which has seen Bitcoin increase by more than 5% on Wednesday, stands out as a notable exception. This trend provides cautious optimism for investors, suggesting a potential reversal of fortunes.
Despite the recent rally, Bitcoin’s current price remains nearly 29% below its all-time high set in October. Analysts had expressed concerns that the preceding decline could signal the onset of a prolonged bear market, with some projecting a drop to $69,000. They pointed to waning liquidity and a significant crash in October that wiped out a record $19 billion in open interest as contributing factors to the downturn.
For the current rally to evolve into a sustainable uptrend, Bitcoin will need to decisively reclaim the $100,000 to $105,000 range. The trading activity observed, characterized by thin liquidity ahead of the US holiday and subdued liquidation data, indicates that bulls are testing whether the worst of the market drawdown has passed. If Bitcoin can maintain its momentum, it could unlock substantial gains for altcoins such as Ethereum, Solana, and XRP, which also experienced gains on Wednesday.
As investors navigate this volatile landscape, the focus will be on whether Bitcoin can sustain its upward trajectory and how institutional sentiment evolves in the coming weeks. The final outcome will depend on a variety of factors, including macroeconomic conditions and the Federal Reserve’s decisions.
