Bitcoin Surges Past $91,000 Amid Shifting Federal Reserve Rate Cut Expectations

The cryptocurrency markets experienced a significant rebound on Thursday, November 27, 2025, highlighted by Bitcoin (BTC) decisively breaking the $91,000 threshold. This upward momentum followed a period of considerable volatility where the leading digital asset had dipped near $81,000 before staging a recovery to $89,000 by Wednesday. By 10:50 PM Eastern Time on Wednesday, Bitcoin was trading hands at $91,755, marking a 4.5% gain over the preceding 24 hours. This rally in crypto mirrored positive sentiment observed in U.S. stock exchanges, with the Dow Jones Industrial Average climbing 0.67% and the S&P 500 rising 0.69% during Wednesday's session.

The primary catalyst driving this price action was a substantial recalibration of market expectations regarding the Federal Reserve's (Fed) future monetary policy. The market’s focus shifted dramatically toward an increased likelihood that the Fed would implement a 25-basis-point reduction in its benchmark interest rate at the upcoming December meeting. Data from CME Group’s FedWatch tool showed the probability of such a move soaring to approximately 85% on Wednesday, a stark contrast to the roughly 30% probability priced in just one week prior. This significant pivot in sentiment, which analysts at JP Morgan also acknowledged by revising their forecast to favor a December cut, signals the potential formation of a more liquidity-friendly economic environment.

While Fed Chair Jerome Powell had previously cautioned that a December reduction was not a foregone conclusion, recent statements, particularly those from John Williams, President of the Federal Reserve Bank of New York, have tilted the scales toward easing. Williams cited indications of a softening labor market as a reason to favor a dovish stance, moving away from the more hawkish positions voiced by some other Fed members earlier. This positive sentiment permeated the broader digital asset space. Ether (Ether) climbed to $3,038, posting a 2.8% increase, while XRP appreciated by 1.6% to reach $2.22. BNB saw a robust 3.9% jump to $897.9, and Solana gained 2.9%, settling at $143.26. This synchronized upward movement suggests a general resurgence of risk appetite across the crypto sector.

Despite the recent surge, Bitcoin recorded a 21% loss for the month of November 2025, underscoring the recent turbulence experienced in the market. Analysts pointed out that the preceding downturn, which was linked to macroeconomic uncertainties and reduced dollar liquidity, represented one of the deepest corrections within the current cycle. Vincent Liu, CEO of Kronos Research, characterized the move above $90,000 as a textbook 'oversold bounce.' He noted that even when prices dipped below the volume-weighted average entry price for BlackRock's IBIT ETF holders, investors demonstrated a strong inclination to maintain their holdings. Similarly, Jeffrey Dean, Chief Analyst at HashKey Group, described the rally as a 'natural reversion following the recent sharp decline,' maintaining that the long-term fundamentals underpinning the market remain sound.

Market participants had been operating under heightened caution, particularly because a U.S. government shutdown had temporarily halted the release of crucial economic indicators, such as Consumer Price Index (CPI) and Non-Farm Payrolls (NFP) data, which were due before the December 10 Fed meeting. The resumption of these key data releases after November 12 was anticipated to provide the Fed with a more comprehensive view of economic conditions. Given that the Fed had already lowered rates to the 3.75% to 4.00% range in October, any decision regarding further easing in December will be pivotal in shaping the trajectory for risk assets as they head into the beginning of 2026.