Bitcoin News Today: Bitcoin Stands Firm Above $91k as Crypto Market Corrects on Fed Signals

Bitcoin's price stabilized above $91,000 in early December 2025, rebounding on growing optimism that the U.S. Federal Reserve will cut interest rates in the coming months. The asset's resilience contrasts with a broader crypto market correction, as investors recalibrate positions amid shifting macroeconomic expectations and liquidity pressures. The Fed's potential easing path, signaled by dovish comments from officials like New York Fed President John Williams and San Francisco Fed President Mary Daly, has bolstered risk appetite, with Bitcoin benefiting from a rotation into assets perceived as beneficiaries of lower borrowing costs as reported by Seeking Alpha.

The recent price action follows a steep two-month drawdown, with Bitcoin falling over 30% from its October peak above $126,000. This correction has been driven by a confluence of factors, including $3.5 billion in November redemptions from Bitcoin exchange-traded funds (ETFs), deteriorating stablecoin liquidity, and aggressive leveraged position unwinds. Products like iShares Bitcoin Trust (IBIT) and Grayscale's GBTC have seen sustained outflows, reflecting a pause in institutional accumulation after the October rally. Analysts estimate the market now requires roughly $1 billion in weekly inflows to push Bitcoin higher, a threshold currently unmet.

Liquidity constraints have further amplified Bitcoin's volatility. Stablecoin market capitalization has contracted by $4.6 billion since November 1, with USDT, USDC, and DAI issuance declining amid reduced on-chain activity. This contraction coincides with centralized exchange trading volumes dropping below $25 billion daily-nearly 40% lower than early October levels-leaving the market more exposed to short-term shocks. Tether CEO Paolo Ardoino has defended the firm's reserves, dismissing S&P Global Ratings' downgrade of USDT's peg stability to a "weak five" and accusing traditional finance of misunderstanding the stablecoin's model.

While Bitcoin ETF outflows persist, alternative crypto assets have attracted capital. XRP ETFs, for instance, saw $118 million in inflows as Bitcoin and Ethereum funds lost $1.6 billion in a single day of market turmoil. This shift underscores growing institutional interest in altcoins, with projects like Ripple's XRP and emerging tokens such as PEPENODE and SUBBD gaining traction for their utility narratives and structured yield mechanisms according to Bitget.

The Fed's policy trajectory remains pivotal. With an 80% probability of a 25-basis-point rate cut priced into markets, traders are closely monitoring delayed U.S. retail sales, PPI data, and weekly jobless claims, which could influence the central bank's final decision. A rate cut would likely reinforce Bitcoin's appeal as a hedge against monetary easing, though near-term volatility is expected as the market digests mixed economic signals according to BeInCrypto.

Looking ahead, Bitcoin's path depends on liquidity replenishment and macroeconomic clarity. While on-chain data suggests mid-tier "whale" wallets are accumulating at discounted levels, sustained price recovery will require renewed institutional inflows and a stabilization of stablecoin buffers. For now, the crypto market remains in a delicate balance, with Bitcoin's ability to hold above $90,000 serving as a critical near-term benchmark.