Bitcoin News Today: Fed's Dovish Shift and ETF Inflows Spark Bitcoin's $91K Rebound

Bitcoin rebounded above $91,000 in early December 2025 as the probability of a Federal Reserve rate cut surged to 70%, sparking renewed optimism in crypto markets. The rally followed a technical rebound from "extreme oversold" levels on the relative strength index (RSI), a metric that historically signaled short-term recoveries. With more than $206 million in weekend liquidations and thin liquidity, traders cited signs of seller exhaustion, pushing Bitcoin to reclaim key support levels. Meanwhile, altcoins like XRP and Zcash (ZEC) surged 7.7% and 17%, respectively, as broader market capitalization climbed 3.29% to $2.95 trillion.

The price action aligned with macroeconomic shifts, as Fed officials like John Williams hinted at a December rate cut to address cooling inflation and a weakening labor market. This dovish outlook lowered borrowing costs and injected liquidity into risk assets, with Bitcoin ETFs seeing $238 million in inflows on Friday, reversing a weeks-long outflow trend. Analysts like Raoul Pal and Ali Martinez highlighted bullish technical setups, including Bitcoin's retest of its 100-week moving average and XRP's Tom DeMark buy signal, suggesting further gains.

Institutional flows also played a pivotal role. Solana spot ETFs attracted $55 million in inflows for the 16th consecutive day, while Ethereum ETFs faced $37 million in outflows, underscoring a rotation into smaller-cap assets according to market data. BlackRock's iShares Bitcoin ETF (IBIT) saw a $60.61 million inflow after its largest redemptions since launch, while Grayscale's Dogecoin ETF (BWOW) and XRP ETF (GXRP) signaled growing institutional interest in altcoins according to recent reports.

However, market dynamics were not uniformly positive. The proposed exclusion of crypto treasury companies like Strategy from MSCI indexes in January 2026 triggered a backlash from Bitcoin advocates, including calls to "boycott" JP Morgan and sue the bank. Strategy founder Michael Saylor argued the policy change would force firms to either reduce crypto holdings or lose passive capital flows, potentially destabilizing prices.

Retail sentiment remained mixed. The Crypto Fear and Greed Index dipped to 11, reflecting extreme fear, while liquidations of $605 million in leveraged positions highlighted market fragility. Despite this, whale activity and ETF inflows indicated latent demand, with Bitcoin's price hovering near $88,000 and Ethereum surpassing $2,900.

Looking ahead, analysts remain cautiously optimistic. With the Fed's December meeting approaching and spot ETFs expanding the crypto product landscape, the market faces a critical inflection point. While near-term resistance at $90,000 and year-end selling pressures could cap gains, the macroeconomic backdrop and institutional adoption suggest a longer-term bull case remains intact.