World’s largest cryptocurrency – Bitcoin rose back above $91,000 for the first time in nearly a week, recovering some losses after a month-long slump. A broad rebound in risk assets and calmer market volatility gave traders space to push prices higher.
Other cryptos like Ethereum also surged 3.75% over the last 24 hours, pushing its price above the $3,000 mark. Several major altcoins — including XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid — also recorded gains of more than 4% during the same period.
On Wednesday, Bitcoin climbed as much as 4% on Wednesday to $90,460, trimming its decline from the early-October record high of just over $126,000 to roughly 28%.
“BTC traded quietly for most of the day, moving sideways around $86.5K–$87.5K before a sharp breakout pushed it toward $91K. The sudden jump was driven mainly by a short-squeeze and helping BTC gain 4.4% in the last 24 hours. Also, in last 2 out of 4 days BTC ETFs have seen inflow, showing that institutional appetite for BTC is gradually picking up again,” said CoinSwitch Markets.
What’s driving the rally?
Bitcoin saw a mild recover from the losses, supported by renewed buying interest and improving sentiment across the market. An estimated 1.8 million BTC were withdrawn from exchanges overnight, leading to speculation around strong institutional activity, according to Edul Patel, CEO of Mudrex.
Although the gains were moderate, they shifted attention again toward higher levels. Cryptocurrencies moved largely in line with equities as confidence grew that the Federal Reserve could soon return to cutting interest rates.
“With that, U.S. jobless claims, released yesterday came less than expected and on similar lines with PPI released yesterday and overall building a good market structure for possible Fed cut,” CoinSwitch added.
According to WazirX, there could be capital outflows from risk on assets with looming concerns around a weakening Yen. “This could be an outcome if Japan decides to tighten financial conditions. Even with improving liquidity, leverage may remain low initially, with no significant improvement in positive sentiment in the market, as experts predict,” it said.
Crypto market outlook
Avinash Shekhar, Co-Founder&CEO,Pi42, believes that traders are observing a period of reduced conviction as price movement stays confined within a relatively narrow band, and many participants prefer to wait for a clearer signal before shifting their positions.
“Market sentiment reflects this caution, since buyers have not shown the strength needed to establish a decisive breakout and sellers have not regained enough control to force a deeper retracement. In this environment, the market appears to be drifting in a holding pattern, dependent on fresh catalysts such as macroeconomic data, liquidity shifts, or changes in derivatives positioning to determine the next significant move,” Shekhar said.
Bitcoin
Edu Patel of Mudrex said that if retail demand builds on this momentum, BTC could test and potentially clear $95,000. A breakout above this level would strengthen the bullish structure and open the path toward new highs.
Ethereum
According to Riya Sehgal, Research Analyst, Delta Exchange, Meanwhile, Ethereum is stabilizing near $3,000, supported by $96 million in ETF inflows and rising institutional interest amid growing expectations of a December Fed rate cut. A breakout above $3,130 could open the path toward $3,400, while support lies at $2,970.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.