On Tuesday, Bitcoin temporarily surpassed $94,000 before retreating toward $92,500 during the Asian morning hours on Wednesday. This fluctuation renewed bullish sentiment but left the market vulnerable ahead of a critical Federal Reserve decision.
This movement coincided with mixed trading in Asian equities, as investors awaited clarity on the Fed’s policy direction and the tone of Chair Jerome Powell’s last press conference of 2025.
Altcoins showed mixed performance. Ether climbed 7% over the past 24 hours to approximately $3,320, marking a nearly 10% increase for the week. Solana and Dogecoin both increased by over 5%, while Cardano stood out with an 8.5% daily jump and nearly 6% weekly gain. Subsequent to those gains, all tokens saw a minor pullback of 1-2% during the Asian morning as traders likely took profits from overnight moves.
XRP recorded a modest 2% rise over 24 hours but remains down 4% for the week, with BNB, USDC, and TRX showing little movement.
Market depth for smaller tokens remained shallow, reflecting the uneven liquidity that has marked December trading thus far.
Bitcoin’s increase was bolstered by a surge in social sentiment. Blockchain analytics firm Santiment reported a wave of retail optimism, indicating that “traders FOMO back in and expect higher prices” as calls for higher levels emerged.
However, sentiment changed rapidly. BTC dipped back below $93,000 in late Asian trading, leading to renewed discourse on whether the movement carried technical significance or was just another stop-hunt within the broader $86,000–$94,000 range.
Some analysts suggested that the volatility spike might indicate exhaustion. CF Benchmarks research analyst Mark Pilipczuk noted via email that Bitcoin has experienced “a classic volatility spike, with realized volatility rising above implied volatility for the first time in months.”
He observed that historically, this crossover “has occurred eight times, with six instances aligning with Bitcoin bottoming and initiating a recovery.”
Bitget CEO Gracy Chen added that cryptocurrencies remain more at risk than equities, stating: “Bitcoin’s consolidation within a broad $86,000–$94,000 range suggests a market lacking sufficient anchors for a decisive move.”
In global markets, Chinese stocks declined following new data showing inflation rising in November, reducing expectations for further domestic easing. Japanese equities slightly fell, while South Korea and Taiwan experienced modest gains. Silver’s rally extended to a record high, and the dollar steadied, reflecting a market still uncertain whether global central banks are willing to ease financial conditions into 2026.
With Fed policy, global equity sentiment, and crypto-specific flows now intertwined, the next significant movement will hinge less on Tuesday’s breakout and more on whether Bitcoin can reclaim the $94,000–$96,000 range post-Powell’s remarks or if macro uncertainty will send it retreating back toward the mid-$80,000s.
