Bitcoin’s market sentiment appears to be on a cautious upswing as the widely watched Fear & Greed Index jumped nine points over the past week. The metric, which tracks investor sentiment through volatility, trading activity, and social trends, signals that market participants may be slowly stepping out of defensive positions, even though overall sentiment remains below neutral levels. Over the weekend, Bitcoin’s price gained nearly 10%, moving from around $80,000 on Friday to approaching $89,000, reflecting a surge in investor interest.
The rally coincided with remarks from New York Fed President John Williams on November 21, emphasizing that there remains room for potential interest rate cuts in December. Prior to this, market expectations largely assumed rates would remain unchanged on December 10. The FedWatch tool on CME now shows nearly an 85% probability of a rate cut, prompting a swift recalibration in both cryptocurrency and equity markets. U.S. stocks also saw gains, with the Nasdaq Composite rising over 2.5% and the Dow Jones adding 0.44%, reinforcing broader risk appetite.
Despite the renewed momentum, experts urge caution. Bitcoin recently tested $89,300 but failed to break through, suggesting that a clear path toward $100,000 may face resistance. Multiple failed attempts near this level could expose lower support zones, highlighting the market’s continued vulnerability. The approach of the December 10 FOMC meeting is likely to draw more speculative interest, but overconfidence could be dangerous in a market that is still fragile and sensitive to macroeconomic developments.
This week will see the release of key U.S. economic indicators, including a late update on Core PCE inflation for September, alongside GDP and retail sales figures. Analysts note that these reports could heavily influence both Fed policy expectations and Bitcoin’s trajectory, adding an extra layer of uncertainty to short-term price movements.
For investors, the recent surge in sentiment and price offers cautious optimism, but market dynamics remain delicate. While the rally suggests confidence may be returning to the cryptocurrency space, careful monitoring of macroeconomic signals and technical resistance levels will be critical in navigating the weeks ahead. The evolving narrative underscores that Bitcoin’s next move will hinge on both economic developments and investor psychology.
