by Coinstrooper Crypto Articles
Quick Take
  • Bitcoin surged above $90,000 following a 13% recovery from $80,000 lows as traders on Kalshi assign a 60% probability to $100K by year-end.
  • Current Fed chair Jerome Powell’s term ends in May.
  • Expectations for a more dovish replacement raised hopes for earlier or deeper interest rate cuts, boosting risk assets from equities to cryptocurrencies.
  • Five strong candidates remain in second-round interviews, moving along very well, according to Bessent.

What Happened

The rally gained momentum after Treasury Secretary Scott Bessent said there was a “very good chance” that President Trump would announce his Federal Reserve chair pick before Christmas, with markets pricing an 85% probability of a December rate cut.

Fed officials signaled a willingness to support cuts, with investors watching upcoming jobless claims for clues on the pivot’s timing.

Market Context

Crypto ETFs continue to see net outflows, with products trading below their indicative values.

However, Lee pointed to rising gold demand from crypto-backed stablecoins helping establish a higher future price floor.

Liquidity Zones Define Bitcoin Price Prediction

Currently, most liquidity is stacking to the upside, with significant clusters at $85,000-$86,000.

Reclaiming $93,000-$94,000 zone could pull the price toward $100,000.

The $97,000-$98,000 area shows heavy liquidity after a sustained selloff, resulting in lower highs.

Moreover, a 90-day spot taker CVD turned neutral, indicating easing selling pressure. Buying dominance could trigger a sustained rally.

Why It Matters

Current Fed chair Jerome Powell’s term ends in May. Expectations for a more dovish replacement raised hopes for earlier or deeper interest rate cuts, boosting risk assets from equities to cryptocurrencies.

However, credit risk in AI-linked technology names crept higher amid widening credit default swap spreads.

Just today, Tom Lee also scaled back his $250,000 forecast to above $100,000, noting Bitcoin may only “maybe” retest October’s $125,100 all-time high.

Break below the trendline, and a 4-hour close under $86,500 could drop toward lower zones, creating a double bottom.

Details

Bitcoin surged above $90,000 following a 13% recovery from $80,000 lows as traders on Kalshi assign a 60% probability to $100K by year-end.

Five strong candidates remain in second-round interviews, moving along very well, according to Bessent.

Macro Headwinds Persist Amid Recovery

Concerns about AI spending pace, particularly Nvidia inventories, have also drawn attention as Bitcoin moves in lockstep with the Nasdaq.

Strategy’s Bitcoin treasury faces scrutiny after the stock appears on MSCI’s delisting watchlist, raising fears of spillover selling.

Lee explained that the tepid view stems from the October 10 crash caused by a glitch that triggered automatic liquidations, wiping out nearly 2 million accounts.

USDT issuer Tether became the largest private gold holder globally, surpassing several central banks.

According to analyst Tracer, Binance, Wintermute, and Bybit bought over $10 billion in Bitcoin in 5 hours, with continued accumulation.

Daily charts show Bitcoin at $90,484, establishing support above $90,000 after breaking $88,000 resistance.

Immediate resistance appears at $92,000-$94,000, followed by $98,000-$101,972 range and a major $106,000-$107,000 zone.

Lower timeframe setup requires a break above resistance for bullish continuation toward $96,000-$98,000 targets.