Bitcoin Nears $87K Milestone as Asian Markets Rally on Fed Rate-Cut Momentum

Digital gold surges as traditional finance plays catch-up

MARKETS IGNORE WALL STREET NERVES

While Fed officials hem and haw about inflation targets, Bitcoin's charging toward $90,000 as Asian traders front-run the inevitable rate cuts. Risk assets globally are finding bids, but crypto's leading the parade—because when central banks flip dovish, digital assets don't just participate in rallies, they define them.

TECHNICALS SCREAM BULLISH

The $87,000 resistance level isn't just cracking—it's evaporating. Volume patterns show institutional money finally understanding what crypto natives knew years ago: in a world of monetary debasement, hard-capped assets win. The Fed's still debating whether to cut 25 or 50 basis points while Bitcoin's up 15% this month alone.

ASIAN SESSION DOMINANCE

Tokyo to Hong Kong traders are loading crypto exposure before London or New York even boot their terminals. They remember 2021's lesson—when Western investors finally 'get it,' they'll be buying from Eastern holders who accumulated during the doubt phase. Another case of financial innovation moving faster than regulatory comprehension.

Because nothing says 'sound monetary policy' like waiting for asset bubbles to form before adjusting rates.

Market snapshot

• Bitcoin: $87,662, down 0.2%
• Ether: $2,954, up 1%
• XRP: $2.19, down 2.5%
• Total crypto market cap: $3.10 trillion, up 0.1%

Softer US Data Fuels December Rate-Cut Bets

The mood improved after a fresh batch of US data pointed to a cooling economy rather than a hard landing. Retail sales grew less than economists had expected and consumer confidence dropped sharply, especially in households’ short-term outlook.

That combination helped reinforce the view that the Fed can start loosening policy without losing credibility on inflation.

Fed funds futures now imply better than an 80% chance of a quarter-point cut at the meeting on Dec. 10, according to the CME Group’s FedWatch tool, a sharp shift from roughly even odds a week earlier.

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Traders are piling into Fed funds futures.
Almost 275,000 new positions added in just three sessions.
Markets now pricing ~80% odds of a December rate cut.
Three days ago it was 30%.
A shift this violent usually means one thing: the market smells a pivot. pic.twitter.com/MdM7o1U205

The yield on the benchmark 10-year US Treasury note briefly slipped below 4% on Tuesday for the first time this month, then edged back above that line, reflecting renewed demand for duration as growth signals soften.

Major Indices Recover As Investors Rotate Out Of Big Tech

Wall Street had already started to stabilize. The S&P 500 and Nasdaq notched a third straight day of gains on Tuesday, clawing back part of this month’s earlier sell-off, even as heavyweight tech names such as Nvidia lagged and capped the Nasdaq’s advance.

The blue-chip Dow led the major indices higher, helped by more cyclical names that tend to benefit from easier policy and stronger liquidity.

That backdrop filtered directly into crypto. bitcoin hovered just under $90,000 in Asian hours, steady rather than spectacular, yet comfortably off the lows reached during the recent shakeout.

Bitcoin Faces December Lull As Traders Temper Expectations

Koinly CEO Robin Singh said Bitcoin has been struggling to reclaim the $90,000 level for far longer than most market participants expected. With the market drifting toward its annual “Christmas hibernation,” the odds of any explosive price action before the New Year are shrinking fast, he said.

“However, a decisive and unexpected reclaim above $90,000 in December WOULD do wonders for market sentiment. It would soften the bears, and help keep 2026 clear of any early ‘crypto winter’ anxieties before they begin,” he added.

“It is a possibility that the next few weeks are a lull, so whatever fireworks traders were hoping for may have to wait until 2026. Most Decembers we’ve seen in the past usually little movement for Bitcoin happens.”

For now, the macro story is doing more of the work than any single crypto catalyst.

Oil traders also took their cue from the shifting risk tone. Crude prices steadied in Asian dealings after sliding on Tuesday, when comments from Ukraine’s President Volodymyr Zelenskiy on a US-backed peace plan fuelled speculation that sanctions on Russian energy exports could eventually ease and bring more supply back to the market.