Bitcoin briefly traded above $94,000 on Tuesday before falling back towards $92,500 on Wednesday morning in Asia, a swing that reignited bullish positioning but left the market exposed ahead of one of the Federal Reserve’s most important decisions of the year.
The move comes as Asian stocks trade mixed as investors await clarity on the Fed’s policy trajectory and the tone of Chairman Jerome Powell’s final news conference in 2025.
Altcoins were mixed. Ether rose 7% over the past 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 fell 1-2% in the Asian morning, with traders likely taking profits overnight.
XRP added 2% over 24 hours and remains down 4% for the week, while BNB, USDC and TRX traded flat.
Market depth for smaller tokens remained low, echoing the uneven liquidity that has characterized December trading thus far.
Bitcoin’s rebound was helped by a rise in social sentiment. Blockchain analytics firm Santiment said the level sparked a wave of optimism in retail trading, noting that “FOMO traders are returning and expecting higher prices” amid calls for “higher prices”
But the feeling quickly subsided. BTC fell back below $93,000 in late Asian trading, sparking renewed debate over whether the move was technically significant or simply another stop chase in the broader $86,000 to $94,000 range.
Some analysts believe the spike in volatility could actually be a sign of exhaustion. Mark Pilipczuk, research analyst at CF Benchmarks, said in an email that Bitcoin showed “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 corresponded to bitcoin’s bottom and the start of a rally.”
Gracy Chen, CEO of Bitget, added that crypto remains more vulnerable than stocks, saying: “Bitcoin’s consolidation in a wide range of $86,000 to $94,000 shows a market that does not have enough anchors to make a decisive decision.
Meanwhile, in global markets, Chinese stocks fell after new data showed rising inflation in November, diminishing 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 stabilized, reflecting a broader market that remains unsure whether global central banks are comfortable with easing financial conditions through 2026.
With Fed policy, global stock sentiment and cryptocurrency-specific flows now intersecting, the next major move will depend less on Tuesday’s breakout and more on whether bitcoin can reclaim the $94,000-$96,000 band after Powell’s remarks — or whether macro caution will cause it to fall back toward the mid-$80,000s.
