• Bitcoin rises above $91K, with traders confident of a $100K target by year-end.
• BTC’s rally gains momentum amid Fed rate cut speculation and liquidity buildup.
• Institutional interest grows as Bitcoin eyes key resistance levels between $92K and $107K.

Bitcoin (BTC) has risen above the $91,000 mark after 12% recovery of the recent fall of about $80,000. However, traders are confident that Bitcoin has a 60% likelihood of reaching $100,000 by the end of the year. The speculation of a possible Federal Reserve rate reduction caused this rush that was provoked by political events in the U.S.

Treasury Secretary Scott Bessent said there was a very good probability that President Trump would announce his next choice of Federal Reserve chair before Christmas. This news contributed to anticipations of high likelihood of a rate cut in December which stood to 85%. 

As the current Fed Chair Jerome Powell reaches the end of his term in May, the market hopes that a more dovish replacement will be chosen. This has brought hope to risk assets such as Bitcoin.

Bitcoin Rallies as Market Concerns Linger

The increased speculation over the interest rate depreciations has given hope to the Bitcoin and other cryptocurrencies. A dove Fed chair would probably encourage lower rates that would encourage more investment in riskier assets. 

Also Read: Bitcoin Hits Triple Bottom: BTC Eyes $210K+ Cycle Target

The market has reacted well with the Bitcoin surging above $91,000. This movement is a component of a bigger trend, as Bitcoin and stocks are largely following each other.

Source: CoinMarketCap

Nevertheless, with optimism, there are other areas of concern with regard to the market. The risk of credit in the stock market linked to AI-related technology has gone up as through the expansion of credit default swaps spreads. Such issues are particularly important as BTC still tends to follow the Nasdaq index, a tech-intensive index, too closely.

Cryptocurrency ETFs have been experiencing issues with net outflows as well. The products are selling below their indicative values and the institutional demand is weak. Moreover, the BTC treasury also has fallen into inspection on the delisting watchlist of MSCI. All this has brought about fears that the selling pressure would be transferred to the rest of the market.

Nonetheless, BTC performance has been good, and the cryptocurrency keeps gaining massive liquidity. Exchanges such as Binance, Wintermute and Bybit purchased more than 10 billion BTC in five hours. This high-volume purchases indicate the long term institutional-level interest, even in a volatile market.

Bitcoin Eyes $100,000 as Liquidity Builds

Liquidity groups have also been established on key price points notably between the ranges of $85,000 to $86,000. Taking back the lost money of $93,000 to 94,000 would lead Bitcoin nearer to the goal of $100,000. Today, the price of Bitcoin is currently above the $90 000 support level and has reached the high threshold of $88,000.

Source: X

The nearest resistance of BTC is in the range of $92,000-$94,000. Another rally would be the price of the BTC rolling further and this time round, the price might be between $98,000 and $101,000. A major resistance zone which the traders will be observing is the $106,000 -$107,000 region.

Recent technical indicators reveal the change in the dynamics of the market. The 90-day spot taker CVD has gone neutral indicating a reduction in the selling pressure. This trend may culminate into a lasting surge with the purchase influence rising in case this trend persists.

Source: X

The prices of BTC are closely related to the other market trends. Although the issue of the AI stock and credit risk still exists, BTC is strong. The general market mood is favorable, and BTC is performing well and has a lot of institutional support. BTC may soon be able to approach new all-time highs, should it manage to breach key resistance levels.

Also Read: Is Bitcoin’s Bottom Behind Us? Whale Activity Hint at Fragile Market Recovery