Bitcoin briefly traded above $94,000 on Tuesday before slipping back to $92,500 in early Asian trade on Wednesday, a move that revived bullish positions but left the market at risk ahead of one of the most important decisions of the year from the Federal Reserve.
The move came as Asian stock markets were mixed as investors awaited clarity on the Fed’s policy path and the tone of Chairman Jerome Powell’s final press conference in 2025.
Altcoins were mixed. Ethereum has gained 7% in the past 24 hours and is trading around $3,320, extending its weekly gain to nearly 10%. Solana is up more than 5%, while Dogecoin is up 5%. Cardano gained 8.5% on the day and nearly 6% on the week, outperforming the market. All coins were down 1-2% in early Asian trading hours as traders were likely to take profits from the overnight move.
XRP is up 2% in 24 hours and is still down 4% on the week, while BNB, USDC and TRX are flat.
Market depth for smaller coins remains weak, echoing the uneven liquidity trading has seen so far in December.
Bitcoin’s rebound was aided by rising social sentiment. Blockchain analytics firm Santiment said the level sparked optimism in the retail sector, noting that “traders are returning with FOMO and anticipating higher prices” amid calls for “higher prices.”
But the mood quickly cooled. Bitcoin fell back below $93,000 in late Asian trading, sparking fresh debate over whether the move made technical sense or was just another stop in the broader range of $86,000 to $94,000.
Some analysts believe that spikes in volatility may actually be a sign of exhaustion. CF Benchmarks research analyst Mark Pilipczuk said in an email that Bitcoin experienced “a typical spike in volatility, with realized volatility rising above implied volatility for the first time in months.”
Historically, he noted, this crossover “has occurred eight times, six of which have coincided with Bitcoin’s bottom and the start of its recovery.”
Bitget CEO Gracy Chen added that cryptocurrencies remain more vulnerable than stocks, saying: “Bitcoin’s consolidation in the $86,000 to $94,000 range shows that the market does not have enough anchors to take decisive action.”
Meanwhile, in global markets, Chinese stocks fell as the latest data showed higher inflation in November, undermining prospects for further easing domestically. Japanese stocks edged lower, while South Korea and Taiwan posted modest gains. Silver extended its rally to a record high and the dollar stabilized, reflecting broader market uncertainty over whether global central banks are willing to ease financial conditions in 2026.
As Fed policy, global stock market sentiment, and cryptocurrency-specific flows intersect, the next big move will depend less on Tuesday’s breakout and more on whether Bitcoin can reclaim the $94,000 to $96,000 range after Powell’s speech, or whether macro caution will see it slip back to around $80,000.
