Bitcoin News Today: Bitcoin Rises on Rate Cut Hopes, Eyes $94K Break as ETF Inflows Fuel Bullish Bets

Bitcoin Price Action Ahead of Fed Meeting

Bitcoin (BTC) is testing a critical $94,000 level as the market braces for the Federal Reserve's December 10 rate decision. Traders are pricing in an 87% probability of a 25-basis-point cut, which would bring the target range down to 3.50–3.75% according to Rabobank analysis. The move has ignited renewed optimism across risk assets, with Bitcoin surging 7% in recent days amid expectations of easing monetary policy as reported by Coinpedia. Analysts and institutional investors are closely watching whether BTC can break through this resistance to rekindle its bullish momentum.

The price action has been volatile, with Bitcoin dropping to $83,900 on Monday before rebounding to nearly $94,000 by Thursday. This sharp bounce has been attributed to a combination of factors, including inflows into U.S. spot Bitcoin ETFs and renewed buying interest from institutional investors as noted by CryptoNewsZ. Bank of America, for example, has advised clients to allocate 1–4% of their portfolios to Bitcoin, potentially unlocking up to $45 billion in new liquidity as reported by CryptoNewsZ. This has added momentum to the market, especially as traders await a pivotal FOMC decision.

Ethereum (ETH) and XRP have also shown strength ahead of the Fed meeting, with ETH trading above $3,100 and XRP edging closer to $2.00 according to analysis from BraveNewCoin. However, the broader market remains cautious. The Relative Strength Index (RSI) for Bitcoin is at 48, indicating that bullish momentum is still building as reported by FXStreet. The MACD has also turned positive, reinforcing the potential for a continued rally if the key resistance level is cleared as noted by Coinpedia. Traders are now watching whether BTC can close above $94,000 for a sustained period, which would signal stronger buying conviction.

Why the Standoff Happened

Bitcoin's recent volatility can be traced to a combination of macroeconomic factors and market sentiment. The Federal Reserve's potential 25-basis-point rate cut has injected optimism into risk assets, as lower interest rates typically make long-term investments like crypto more attractive according to Coinpedia analysis. However, the market remains split on the broader economic outlook. While inflation has slightly eased, concerns over wage stickiness and fiscal risks—especially under the Trump administration—continue to weigh on expectations as reported by CoinDesk. This has led to mixed reactions in the market, with Bitcoin trading in a tight range around $93,000–$94,000.

The re-emergence of institutional liquidity and ETF inflows has also played a role. After weeks of outflows, U.S. spot Bitcoin ETFs recorded five consecutive days of net inflows, with BlackRock's IBIT leading the charge according to CryptoNewsZ. Vanguard's recent decision to enable its clients to trade Bitcoin ETFs on its brokerage platform has further fueled demand as reported by CryptoNewsZ. These developments suggest that institutional players are increasingly viewing Bitcoin as a strategic asset, even as the broader market remains cautious.

What Analysts Are Watching

Market analysts and technical traders are focusing on several key indicators to gauge Bitcoin's next move. One of the most closely watched metrics is the 50-week simple moving average (SMA), which currently sits at around $102,000. If Bitcoin can push above this level and maintain it, it could signal the start of a new bullish phase according to Bitget analysis. Conversely, a sustained close below $90,000 could trigger a deeper correction, testing support levels as low as $88,000 according to BraveNewCoin.

On-chain data also reveals interesting dynamics. Bitcoin has been accumulating liquidity clusters around the $93,000–$95,000 range, with stacked short positions poised to liquidate if the price breaks higher as noted by BraveNewCoin. This could lead to a sharp surge if the resistance is cleared. Additionally, the 4-hour Binance chart shows an ascending trendline forming from late-November lows, which could provide further technical support for bulls as reported by BraveNewCoin. Institutional investors are also watching the 200-day EMA and other long-term averages to determine whether Bitcoin is entering a new accumulation phase.

What This Means for Investors

For retail and institutional investors alike, the coming days are critical. A successful breakout above $94,000 could trigger a wave of buying, particularly among ETF-linked investors and those leveraging Bitcoin as a hedge against inflation and fiat devaluation according to Coinpedia. On the flip side, a failure to hold this level may lead to renewed bearish sentiment, especially if the Fed surprises the market with a more cautious stance as reported by Bitcoin Magazine.

Investors are also considering the broader implications of a rate cut. While lower interest rates typically boost asset prices, they can also increase competition from other risk assets, such as stocks and gold. This has led to a tug-of-war in the market, with Bitcoin competing against traditional safe havens like gold, which has surged nearly 60% this year according to CoinDesk analysis. The outcome of the FOMC meeting and subsequent policy signals will likely determine whether Bitcoin continues its rally or faces renewed headwinds.

Looking ahead, the market is bracing for additional catalysts. The upcoming PCE inflation report and JOLTs job openings data will provide further insight into the Fed's decision-making framework according to Coinpedia. If inflation remains stubbornly above target or employment data shows resilience, the central bank may delay further rate cuts, potentially dampening Bitcoin's momentum. Conversely, a more dovish outcome could accelerate the asset's recovery.