Bitcoin News Today: Crypto's Bullish Rally Faces Looming Fed Risks and Volatility

Bitcoin's price surged past $90,000 this week, marking a significant recovery after weeks of volatility, while Ethereum (ETH) and XRP also showed signs of stabilization amid mixed macroeconomic signals. The rally was driven by a combination of ETF inflows, institutional interest, and cautious optimism about the Federal Reserve's potential policy shifts. However, analysts warned that structural risks remain, including the Fed's December meeting and ongoing debates over stablecoin systemic risks.

The cryptocurrency market has been navigating a complex landscape of bearish and bullish forces. Bitcoin's price dropped nearly 40% from its October highs above $125,000, fueled by tariff-related uncertainty, a stronger dollar, and forced liquidations. Yet, recent data revealed ETF inflows as a critical catalyst. Bitcoin ETFs recorded $128 million in inflows on Tuesday, signaling renewed institutional participation after weeks of subdued demand. Ethereum ETFs, meanwhile, saw their third consecutive day of inflows, totaling $12.81 billion cumulatively, with Fidelity's FETH and BlackRock's ETHA leading the charge. XRP ETFs also gained traction, with $35 million in inflows on Tuesday, reflecting growing institutional appetite for altcoin-based products.

The recovery was further supported by technical indicators. Bitcoin's Relative Strength Index (RSI) lingered above oversold levels, and the Moving Average Convergence Divergence (MACD) hinted at potential bullish momentum if the price closes above $87,000. Ethereum, though still below key moving averages, showed a MACD buy signal, while XRP's price action suggested short-term resilience as the token traded above $2.18.

Market participants remain divided on the sustainability of the rebound. Nicholas Roberts-Huntley of Blueprint Finance argued that the recent drawdown had "cleared out excess leverage," setting the stage for a healthier upward move, with a target range of $95,000–$110,000 for Bitcoin by year-end. Conversely, Andreas Brekken of SideShift.ai noted that the bear market began in late 2024, masked by inflationary pressures, and predicted a new bull cycle would begin in early 2026.

The broader crypto ecosystem also saw developments that could influence sentiment. Bitcoin Munari's presale concluded its first round at $0.10, with a structured price increase planned ahead of its 2026 Solana launch. Gemini launched a Solana-themed credit card with auto-staking rewards, while Bitwise and Franklin Templeton debuted XRP ETFs, capturing $130 million in combined inflows on their first day. These innovations underscored the sector's evolving institutional infrastructure.

However, risks persisted. The U.S. Federal Reserve's December policy decision loomed large, with investors bracing for potential tightening. ETF outflows could also reignite downward pressure if macroeconomic conditions deteriorated. Meanwhile, the Bank for International Settlements raised concerns about stablecoin systemic risks, though Coinbase's executives pushed back, arguing stablecoins were safer than traditional loans.

Looking ahead, the path for Bitcoin and altcoins hinged on three key factors: the Fed's December meeting, ETF flow stability, and price support around $84,000. If these conditions aligned, the market could see a continuation of the recovery. For now, the interplay between institutional adoption and macroeconomic volatility defined the crypto landscape, with both opportunities and challenges on the horizon.