BTC rebounds above $92,000 as traders weigh Fed outlook and volatility risks
Bitcoin exchange-traded funds (ETFs) recorded a notable rebound on Tuesday, attracting $152 million in net inflows ahead of the Federal Reserve’s final policy decision of 2025. The surge was led by Fidelity’s FBTC fund, which alone drew $199 million, reversing several days of prior weakness. Ethereum and Solana ETFs also posted gains, with Ethereum adding $178 million and Solana $16.5 million in inflows.
The inflows coincided with a brief Bitcoin rally to $95,000, before consolidating in the $92,000–$93,000 range. Analysts attribute this movement to accumulation by whales and leveraged position resets, rather than a short-term squeeze. On-chain indicators suggest a constructive trend: exchange balances are falling, large wallets are net buyers, and overall market leverage has decreased from summer peaks, signaling a healthier structure.
Despite this rebound, market caution remains high. Historically, six of seven Fed meetings in 2025 triggered Bitcoin sell-offs, and derivatives markets reflect defensive positioning, with options skew showing elevated put premiums. Short liquidations of $317 million over the past 24 hours have already cleared speculative excess, while retail investors continue distributing into strength.
The market now closely watches the Fed’s 25-basis-point rate cut, which is largely priced in, and Powell’s tone on balance sheet guidance and 2026 policy. Analysts suggest that a dovish outlook could push Bitcoin toward $96,000–$106,000, while a cautious stance may return it to the mid-$80,000s. Global events, such as the Bank of Japan meeting on December 19, could further influence volatility in Bitcoin and other crypto assets.
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