Bitcoin reclaimed the $90,000 mark on Wednesday, providing relief to investors after a turbulent two weeks that had many questioning whether the crypto market was entering a new bear phase. The flagship cryptocurrency briefly touched $90,334 in afternoon trading before settling around $90,035, marking a 3% jump over 24 hours according to CoinGecko. The rebound comes after Bitcoin’s sharp November decline, which saw prices dip as low as $81,000, erasing all of its gains for 2025 and wiping out optimism from October’s record high of $126,080.
Analysts point to fading institutional interest and ongoing uncertainty over U.S. Federal Reserve policy as key drivers of volatility. Historically, Bitcoin has responded positively to interest rate cuts, but market sentiment has fluctuated amid speculation over whether the Fed will implement a third rate reduction in December. The cryptocurrency’s recent volatility highlights the fragile nature of market liquidity, further stressed by the $19 billion open interest wiped out during October’s market crash.
Other major cryptocurrencies joined Bitcoin’s rally on Wednesday. Ethereum rose approximately 3% to near $3,022, while Solana surged almost 5% to $143. XRP and Dogecoin also posted gains of 2% and 3%, respectively, showing broader market recovery. Trading activity for Bitcoin spiked, with volume surpassing $114 billion and $335 million in derivatives contracts liquidated in the past day, signaling increased investor participation even amid uncertainty.
Experts caution that while the recent rebound is encouraging, it may be temporary if macroeconomic conditions remain uncertain. Investors should monitor liquidity levels, institutional interest, and regulatory developments closely as the market navigates this period of volatility. With Thanksgiving prompting a pause for many U.S. investors, crypto trading will continue uninterrupted globally, potentially setting the stage for further moves heading into December.
The rebound above $90,000 offers a momentary sense of stability, but market watchers emphasize that the larger trend remains delicate. The next few weeks will be crucial in determining whether this upswing can sustain momentum or if Bitcoin and its peers face another period of correction. The crypto market’s resilience, combined with ongoing macroeconomic shifts, will likely shape investor strategies as 2025 draws to a close.
