Market News

Cryptocurrencies looked to mount another rebound ahead of the Federal Reserve’s final rate decision of the year.

Bitcoin and other cryptocurrencies were jumping early Monday as digital assets looked to mount another rebound ahead of the Federal Reserve’s final interest-rate decision of the year.

Bitcoin BTCUSD+0.47% was trading at $92,018 early in the day, up more than 3% over the past 24 hours after slipping below $88,000 at one point on Sunday. The world’s largest cryptocurrency has struggled to move above the $94,000 level despite getting close on several occasions in recent weeks. It remains 27% off its record high above $126,000 reached in October.

XRPUSD+1.65>%rose 3.4% to $2.10.

A Fed rate cut could help keep the momentum going. Cryptocurrencies typically get a boost from lower borrowing costs, as that makes them more attractive relative to lower-yielding assets. Markets are pricing in an 87% chance that the central bank cuts interest rates by a quarter-point on Wednesday.

But that assumption has been baked in for a while and hasn’t sparked a sustained crypto comeback yet.

However, the path for Bitcoin may be a bit more complicated than that.

“A large share of Bitcoin is currently held at a loss, so each move toward $96,000-$100,000 meets selling from holders who want to exit at break-even,” said Arthur Azizov, founder of B2 Ventures.

Those dynamics go some way to explaining the disconnect between the stock market and cryptos, he added. The S&P 500 SPX 0.35% is up 17% in 2025, while Bitcoin is down around 1.4%.

“I see an idling, maybe even stagnating market. Only a strong move above $100,000 could flip the script, restore confidence, and open the way toward $120,000+ level,” he said. But if that fails, he sees another pullback—this time to around $82,000 to $88,000.

Write to Callum Keown at [email protected]