Bitcoin Rallies Post-Thanksgiving Amid Fed Rate Cut Speculation
- Bitcoin BTC -2.33% rallies above $91,000 amid Fed rate cut speculation.
- Investor sentiment boosted by potential rate cuts.
- Crypto stocks see positive gains alongside Bitcoin’s rise.
Bitcoin exhibited a modest rally post-Thanksgiving 2025, increasing above $91,000 driven by heightened market expectations of a December Federal Reserve rate cut.
The rally highlights how macroeconomic policy developments, particularly potential rate cuts, significantly impact cryptocurrency valuations and investor sentiment, boosting crypto-related stocks and contributing to Bitcoin’s price rise.
Bitcoin experienced a modest rally mode post-Thanksgiving, rising above $91,000, briefly reaching $93,000. Market expectations of a Federal Reserve rate cut in December significantly spurred this rally, indicating broad market support.
Tom Lee, Chair of Fundstrat, and other prominent Bitcoin bulls contributed to momentum with optimistic year-end predictions. Despite bearish technical signals, investors anticipate Bitcoin might surpass $100,000 by 2025, boosting market enthusiasm. As Tom Lee mentioned, “I believe it’s still quite probable that Bitcoin will exceed $100,000 before the year concludes, and it might even reach a new peak”.
The increase in market-implied odds for a Federal Reserve rate cut spurred Bitcoin-related gains. Bitcoin surges past $91k as Fed rate cut speculation grows. Confidence grew as the odds rose from 44% to 85%, positively impacting crypto market sentiment and miner stocks like Riot Platforms.
Crypto-related stocks and trading platforms experienced notable gains. Market players such as Cathie Wood remain optimistic despite volatility, while Cosmo Jien of Panta Capital views Fed actions as a crucial catalyst for crypto momentum.
The rally reflects typical end-of-year Bitcoin performance, with historical precedents of December gains. December’s market movements reiterate how macroeconomic conditions like Fed policy shifts can amplify crypto market trends. Cosmo Jien, General Partner and Portfolio Manager, Panta Capital, noted rising confidence due to the Fed’s expected December rate cut and short-term technical indicators showing oversold conditions conducive to a rebound.
Potential outcomes from the rally include increased market confidence and continued investor interest in related equities. Historical trends suggest similar rallies previously benefited from rate cut expectations, revealing Bitcoin’s dynamic correlation with macro financial stimuli.
