Bitcoin News Today: Bitcoin Surges Past $91,000 on Fed Rate-Cut Hopes, Institutional Buying Push

Bitcoin surged above $91,000 on December 2, 2025, driven by growing anticipation of a December Federal Reserve rate cut and increased institutional buying. The price movement followed a volatile December 1 session, which saw a sharp decline amid a DeFi incident and global macroeconomic uncertainty. Despite the turbulence, the broader narrative remains bullish, with prediction markets pricing in an 88% chance of a 25 basis point cut at the Fed's December meeting.

BlackRock, the world's largest asset manager, continues to play a pivotal role in shaping the crypto market. Its iShares Bitcoin Trust (IBIT) is one of the leading ETF vehicles for institutional exposure to Bitcoin. The firm's Strategic Income Opportunities Portfolio recently increased its stake in IBIT by 14%, signaling continued confidence in the asset class. BlackRock has also emphasized the importance of regulated vehicles for crypto exposure, a stance now echoed by Bank of America.

The latter announced on December 2 that it will allow its wealth management advisors to recommend a 1%-4% allocation to Bitcoin through four physical ETFs, including BlackRock's IBIT, Fidelity's FBTC, Bitwise's BITB, and Grayscale's BTC. This marks a major shift in how one of the U.S.'s largest banks approaches digital assets according to market reports. The change aligns with broader Wall Street trends, as institutions like Morgan Stanley and Vanguard also open doors to crypto for high-net-worth clients.

How Markets Reacted

Bitcoin's price rebound was supported by a modest turnaround in spot ETF flows. For the week ending November 29, spot Bitcoin ETFs posted $70 million in net inflows, ending four consecutive weeks of outflows that had drained $4.35 billion from the sector according to Cointelegraph. The inflows were led by Fidelity's FBTC and ARK 21Shares' ARKB, which saw significant contributions, despite BlackRock's IBIT experiencing $113.7 million in outflows.

The optimism extended to Ethereum as well, with spot Ether ETFs recording $312.6 million in weekly inflows following three weeks of heavy withdrawals. The recent influx pushed cumulative inflows for Ether ETFs to $12.94 billion since their launch according to Cointelegraph. The broader market reaction reflects renewed institutional interest in digital assets, even amid ongoing volatility and regulatory uncertainty.

What Analysts Are Watching

Market participants and analysts are closely monitoring the Federal Reserve's December policy decision, with the majority expecting a rate cut. Greg Waisman of Mercuryo noted that Bitcoin has rebounded above $90,000 amid rising expectations of a Fed dovish pivot. Meanwhile, technical indicators suggest that Bitcoin may have formed a short-term bottom. Traders like Mister Crypto and André Dragosch of Bitwise Europe argue that the RSI is nearing oversold levels and that whale activity could spark a relief rally toward $100,000–$110,000 according to Cointelegraph.

However, the road to $100,000 is not without risks. On December 1, Bitcoin faced a sharp pullback after a DeFi incident involving Yearn Finance's yETH liquidity pool triggered a sell-off. The event, combined with rising Japanese bond yields and a potential Bank of Japan rate hike, led to a cascade of liquidations. Over $200 million in leveraged longs were wiped out within hours .

Risks to the Outlook

Despite the institutional embrace of Bitcoin, retail investors are bearing the brunt of recent volatility. According to market analysis, BofA's endorsement of a 1%-4% crypto allocation comes as retail clients hold the majority of Bitcoin ETF supply and are absorbing significant losses. The market has also been impacted by thin liquidity and reduced speculative activity, with most major altcoins recording 5–10% weekly losses according to analysis.

The regulatory environment remains a wildcard. While the Trump administration has removed some barriers to crypto activities, Congress has yet to pass legislation that would clarify custody and trading rules. Until that happens, banks like JPMorgan and PNC are hesitant to expand their crypto offerings beyond ETFs according to industry reports.

For now, the focus remains on macroeconomic signals. Investors are advised to closely monitor U.S. inflation data, labor market trends, and Fed forward guidance. A December rate cut is now the base case, but even a single 25 bps cut followed by a prolonged pause could limit the upside for Bitcoin. Analysts like Joseph Raczynski and Ben Ritchie have made bullish predictions, with some forecasting the price could exceed $151,000 or even $200,000 by year-end.

What This Means for Investors

The institutional shift toward Bitcoin and the broader acceptance of crypto as a store of value are reshaping investment strategies. Bank of America's new guidance reflects growing client demand for digital assets and positions the bank alongside BlackRock and Morgan Stanley in the crypto adoption race according to market reports. However, investors must remain cautious, as leverage and ETF outflows remain significant risks.

For those with a high-risk tolerance, a modest allocation to Bitcoin through regulated ETFs may be appropriate, especially in a macroeconomic environment where inflation is near target and global liquidity is improving according to financial analysis. But as December unfolds, market participants will need to watch for signs of renewed panic or macroeconomic surprises that could disrupt the current bullish narrative.