Bitcoin briefly traded above $94,000 on Tuesday before falling back toward $92,500 in Asian morning hours on Wednesday, a swing that revived bullish positioning but left the market exposed ahead of one of the Federal Reserve’s most consequential decisions of the year.
The move came at a time when Asian stocks were trading mixed, as investors awaited clarity on the Fed’s policy path and the tone of Chairman Jerome Powell’s final press conference of 2025.
Altcoins were mixed. Ether rose 7% in the last 24 hours to trade around $3,320, extending its weekly gain to nearly 10%. Solana added more than 5%, while dogecoin advanced 5%. Cardano outperformed with a jump of 8.5% on the day and almost 6% on the week. All tokens retreated between 1% and 2% in the Asian morning hours as traders likely took profits on the move overnight.
XRP added a smaller 2% in 24 hours and remains down 4% on the week, while BNB, USDC and TRX traded flat.
Market depth for smaller tokens remained thin, echoing the uneven liquidity that has characterized December trading so far.
Bitcoin’s rally was aided by a rise in social sentiment. Blockchain analytics firm Santiment said the level sparked a wave of retail optimism, noting that “FOMO traders return and expect higher prices” while calling for “higher prices.”
But the feeling quickly cooled. BTC fell back below $93,000 in recent Asian trading, sparking renewed debate over whether the move was technically significant or just another stop within the broader $86,000 to $94,000 range.
Some analysts argued that the increase in volatility could actually indicate exhaustion. CF Benchmarks research analyst Mark Pilipczuk said in an email that bitcoin has recorded “a classic volatility spike, with realized volatility exceeding implied volatility for the first time in months.”
He noted that historically, this crossover “has occurred eight times, and in six cases it aligned with Bitcoin’s bottom and the start of a recovery.”
Gracy Chen, CEO of Bitget, added that cryptocurrencies remain more vulnerable than stocks, saying: “Bitcoin’s consolidation in a wide range between $86,000 and $94,000 shows a market that does not have enough anchors to make a decisive move.”
Meanwhile, in global markets, Chinese stocks fell after new data showed inflation rose in November, dimming prospects for further domestic easing. Japanese stocks fell slightly, while South Korea and Taiwan posted modest gains. Silver extended its rally to a record high and the dollar steadied, reflecting a broader market that is still unsure whether global central banks are comfortable easing financial conditions through 2026.
With Federal Reserve policy, global stock sentiment and crypto-specific flows now intersecting, the next big move will depend less on Tuesday’s breakout and more on whether bitcoin can reclaim the $94,000-$96,000 band after Powell’s comments, or if macroeconomic caution sends it back toward $80,000.
