Bitcoin rises 3% and reaches $92,000 in decisive Fed week

Source: PortaldoBitcoin Original Title: Bitcoin today: BTC rises 3% and reaches $92,000 in decisive Fed week Original Link: https://portaldobitcoin.uol.com.br/bitcoin-hoje-btc-sobe-3-e-atinge-us-92-mil-em-semana-decisiva-do-fed/ Bitcoin reclaimed the $90,000 level on Sunday and continues to climb this Monday. Up 3.1% on the day, the market-leading cryptocurrency is trading at $92,008. In Brazilian reais, BTC has also regained the important R$500,000 mark, currently quoted at R$502,022.

This week promises to be eventful for traders awaiting the US central bank’s final interest rate decision of the year, as well as new employment data to be released this week.

Bitcoin has been trading in a narrow range since the $19 billion liquidation of leveraged positions in early October, amid fears of persistent inflation that could complicate the Fed’s path to future rate cuts.

“Changes in interest rate expectations reverberate through crypto funding markets in Asia much more quickly than in traditional markets,” said Michael Wu, CEO of Amber Group.

“We’re seeing funding spreads and lending costs move in sync with global interest rate guidelines. This is driving a critical reassessment of treasury strategies; many desks are diversifying liquidity between CeFi and DeFi platforms to hedge against volatility and optimize opportunities as macro cycles accelerate.”

Service inflation, meanwhile, has cooled from last year’s peaks but remains higher than goods inflation, with housing costs still above the Fed’s target.

Traders remain cautious

This uneven progress has complicated the Fed’s disinflation plan and keeps traders cautious about how far and how quickly rate cuts can happen, including the final decision of the year, which will be announced on Wednesday.

With this scenario weighing on investor sentiment, gold and silver have surged, while Bitcoin remains stable, as the digital asset is more sensitive to macroeconomic shocks than US stocks.

This could strengthen the Fed’s case for a cut now that the release of economic data has returned to normal after delays caused by the longest government shutdown in US history.

A Fed benchmark rate cut is normally seen as positive for risk assets, as the cost of credit becomes lower, potentially driving a rally in risky assets — including crypto, according to traditional logic.

With economic data flowing normally again, analysts point out that “a cut is not just likely,” adding that with the end of quantitative tightening, “the market is primed for a rally.”

“A rate cut could be the catalyst for this to start.”