Bitcoin News : Bitcoin Rebounds To $91,000 Levels On Hopes Of Fed Rate Cut

The hopes of the Federal Reserve’s rate cuts have always been a push that took Bitcoin to the green. This time, once again, history repeats itself as Bitcoin rebounds to $91,000 as news surrounds the US job data and an associated Fed rate cuts.

With Fed rate cuts, the traditional assets like US treasury bills and bonds lose their lucrative nature, and risk appetite returns to the market. The brief but strong bull run that took Bitcoin over the $91,000 mark could be fueled by this enthusiasm. In this article, we will look at how the possible Fed rate cuts are affecting Bitcoin and the broader crypto market.

Bitcoin’s Rebound To $91,000

With renewed hopes of a Fed rate cut, on 8th December 2025, Bitcoin rose nearly 1.86% and reached the $91,114 mark in the early period. Compared to the previous day, this was a huge rise and gave renewed hope to investors, both retail and institutional alike. 

The consolidation range was threatening BTC’s progress into higher price territories. This consolidation range, consisting of $88-90K has been the range that BTC has been trading for the past few days. This range marked a huge threat as BTC consistently fell short of the momentum required to break through key resistance points.

Even though the price broke through the upper ceiling of $91K, the momentum was weak. This is what concerned many investors, as it was clear from the analysis that this rise was partly contributed to by dip buying. However, analysts are stating that such market softening happens whenever there are pending Fed announcements. Once there is more clarity, the asset will retain its volatility; however, this may drive the price downwards if the Fed maintains a hawkish tone on its rates.

According to CoinSwitch Markets Desk, BTC requires a clean break above the $91000-$92000 range to strengthen its upward momentum. However, a dip below the $88000 level may break the spirit of Bitcoin. However, the really opportunistic dip buyers may bring prices back to a level position before the finalization of the Fed announcements.

Details On The Fed Rate Cut

The news from Washington suggests that there is a deep divide within the FOMC regarding the rate cut. Both Hawkish and Dovish voices echo through the halls. On Tuesday, 9th December 2025, the rate-setting Federal Open Market Committee plans on holding a meeting regarding the matter.

Investors are looking on the bright side, with a vast majority of them expecting rate cuts between 3.5 to 3.75 percentage points. In a direct response to the weakening US job market, 85% of the members are taking a dovish tone towards the rate cut.

According to a poll conducted by Financial Times, the Fed rate cut by 25bps is a possibility that is backed by nearly 30 of the 40 members. The battle is between the weakening US labour market and rising inflation rates. With the feud spurring a controversial debate, there are regional Fed presidents who say that the previous rate cut was acceptable, but another rate cut just after the previous one may boost the inflation rate, which has been creeping upward since the earlier rate cut. However, the other representation argues for the weakened US labour market and that a Fed rate cut is inevitable for the stabilization of the economy.

How The Fed Rate Cut Will Support BTC

It is not just the crypto market that benefits from the rate cut; rather, the stock market in general and the broader economic situation of the American economy will benefit from the upcoming rate cut. This is why the Hawkish voices are being suppressed.

The rate cut will ensure that enough risk appetite returns to the market. This carries great significance for macro-risk assets like Bitcoin and stocks. Couple this with the clearing of the order book through healthy corrections, and Bitcoin can indeed break free of the consolidation range it is trapped in at the moment.

Conclusion

Whether the Federal Reserve will cut rates is a decision that we will have to wait for. This rate cut, if realized, will push Bitcoin to new highs. If Bitcoin can hit these new highs by breaking key resistance points, there is a chance for the asset to regain its October high once again before the year ends.

On the Fed panel, things are looking positive as the dovish voices retain more strength, which has led to the chances of the rate cut happening to rise by nearly 85%. This renewed hope is one major factor that has pulled Bitcoin back to the $91K range. With more factors like ETF inflows and market stabilization, which could be the direct consequence of a Fed rate cut, the optimism surrounding Bitcoin has improved significantly.