Bitcoin briefly traded above $94,000 on Tuesday before falling back towards $92,500 in Asian morning hours on Wednesday, a swing that revived bullish positioning but left the market exposed ahead of one of the year’s most consequential Federal Reserve decisions.
The move came as Asian shares traded mixed as investors awaited clarity on the Fed’s policy path and the tone of Chairman Jerome Powell’s final press conference in 2025.
Altcoins were mixed. Ether rallied 7% in the past 24 hours to trade around $3,320, extending its weekly gain to nearly 10%. Solana added over 5% while dogecoin gained 5%. Cardano fared better, jumping 8.5% on the day and almost 6% on the week. All tokens pulled back 1-2% in the Asian morning hours as traders likely took profits on the move overnight.
XRP added a minor 2% over 24 hours and remains down 4% on the week, while BNB, USDC and TRX traded flat.
Market depth in smaller tokens remained thin, reflecting the uneven liquidity that has characterized December trading thus far.
Bitcoin’s recovery was aided by a rise in social sentiment. Blockchain research firm Santiment said the level sparked a wave of retail optimism, noting that “trader FOMO is returning and anticipating higher prices” which calls for “higher
But the mood quickly cooled. BTC fell back below $93,000 in late Asian trade, leading to renewed debate over whether the move was technically meaningful or just another stop hunt within the broader $86,000-$94,000 range.
Some analysts argued that the volatility spike may actually signal exhaustion. CF Benchmarks analyst Mark Pilipczuk said in an email that bitcoin has posted “a classic volatility spike, with realized volatility rising above implied volatility for the first time in months.”
He noted that historically this crossover “has occurred eight times, and in six cases it coincided with the bitcoin bottom and the start of a recovery.”
Bitget CEO Gracy Chen added that crypto remains more vulnerable than stocks, stating, “Bitcoin’s consolidation in a broad $86,000-$94,000 range shows a market that doesn’t have enough anchors to make a decisive move.”
Meanwhile, Chinese shares fell on global markets after new data showed inflation ticked higher in November, dimming the prospect of further domestic easing. Japanese stocks fell, while South Korea and Taiwan saw modest gains. Silver extended its rally to a record high and the dollar steadied, reflecting a broader market that remains uncertain whether global central banks are comfortable easing monetary conditions into 2026.
With Fed policy, global equity sentiment and crypto-specific flows now intersecting, the next big move will depend less on Tuesday’s breakout and more on whether bitcoin can regain the $94,000-$96,000 band following Powell’s remarks — or whether macro caution sends it sliding back toward the mid-$80,000s.
