Briefing
Crypto markets rebounded this week as expectations for a December Federal Reserve rate cut dramatically increased, shifting from approximately 30% to 85% probability. This surge in dovish sentiment provided relief across risk assets, lifting Bitcoin back above the $90,000 mark with a 4.9% weekly gain. The market’s Fear & Greed Index also moved out of “Extreme Fear” for the first time in 18 days, indicating a stabilization of investor sentiment.
Context
Before this news, many investors wondered if the crypto market’s recent downturn, characterized by regulatory pressures and significant deleveraging in derivatives, would continue its slide. The market had experienced a period of “Extreme Fear,” leaving many questioning when, or if, a bottom would be found amidst persistent selling pressure and technical breakdowns.
Analysis
The market’s recent rebound primarily stems from a rapid repricing of Federal Reserve policy expectations. Traders now overwhelmingly anticipate a 25 basis point rate cut at the December FOMC meeting, a dramatic reversal from earlier hawkish signals. This shift in macro sentiment led to lower U.S. Treasury yields and a softer U.S. dollar, making risk assets like cryptocurrencies more attractive.
Think of it like a spring being compressed ∞ as the pressure of tight monetary policy eases, the market, like a coiled spring, expands. This reduction in macro uncertainty allowed capital to flow back into crypto, leading to a stabilization and subsequent price recovery.
Parameters
- December Rate Cut Probability ∞ 87% chance of a Federal Reserve rate cut in December, a significant increase from previous weeks.
- Bitcoin Weekly Gain ∞ Bitcoin added 4.9% this week, closing above US$90,000.
- Crypto Fear & Greed Index ∞ Climbed to 20 (Fear), moving out of “Extreme Fear” after 18 consecutive days.
- Global Crypto Market Cap ∞ Currently stands at $3.08 trillion, down 1.23% in the last 24 hours as of November 29, 2025.
Outlook
The market’s near-term direction will hinge heavily on the upcoming December FOMC meeting and the nomination of the next Federal Reserve Chair. These events will shape future rate expectations and provide critical signals about the trajectory of U.S. economic momentum. Investors should watch for Bitcoin to reclaim the $92,000 ∞ $94,000 resistance zone, which could signal a broader rally, or a dip below $90,000, which might indicate a return to choppy sideways action.
