Bitcoin rebounds to $91,000 levels on hopes of Fed rate cut

Bitcoin stood just above $91,114 on December 8 morning, gaining 1.86 percent from the previous session, on growing hopes of a rate cut by the US Federal Reserve this week. In the morning session,  the world's largest cryptocurrency fell to $89,326 but recovered to hover above $91,000 levels.

"BTC traded in a $88K–$90K consolidation range, with repeated and consistent dips. Momentum remained soft, but a sharp rebound briefly pushed BTC above $91K, likely driven by dip-buying, where it continues to stabilize. Historically, Bitcoin often softens ahead of FOMC announcements and turns volatile as traders react to Fed guidance," said CoinSwitch Markets Desk on their daily commentary.

Bitcoin analysts expect a clean break above $91K–$92K could strengthen momentum, while dips toward $88K may still attract buyers unless macro volatility increases. Bitcoin climbed to a peak of $126,000 in October before tumbling to a low of $75,000 level in April. Traders are now pricing in an 88.4 percent chance of a December rate cut by the Federal Reserve.

"Traders should stay cautious as potential price spikes in either direction may occur this week ahead of the US interest rate decision, which will likely dictate whether the current move turns into a sustained rally or a short-term pullback. With several major data releases scheduled, market volatility is likely persist, look out for clear breakout confirmations above key resistance levels, as upcoming policy signals," said Piyush Walke, Derivatives Research Analyst, Delta Exchange.