Bitcoin extended its weekend rebound on Monday, briefly surpassing $89,000, as traders responded to growing expectations for a December Federal Reserve rate cut. The broader crypto market also gained ground, with altcoins taking the lead amid easing macro pressures and improving sentiment.
Ether (ETH) rose 4.4% to just under $3,000, tracking the performance of the CoinDesk 20 Index. Crypto-related equities mirrored the rally, with miners focused on AI and high-performance computing seeing some of the strongest gains. Companies poised to benefit from Amazon’s $50 billion AI and supercomputing investment—including CleanSpark (CLSK) and Cipher Mining (CIFR)—jumped 18%, while Hut 8 (HUT), Bitfarms (BITF), IREN, HIVE, and TeraWulf (WULF) posted double-digit advances.
Even struggling digital asset treasuries participated in the rebound. Ethereum-focused BitMine (BMNR) surged nearly 20%, Solana Company (HSDT) climbed over 16%, and Avalanche treasury AVAX One (AVX) gained 10.4%. Bitcoin treasury firms Strive (ASST) and MetaPlanet (MTPLF) rose 10.7% and 8.7%, respectively, while MicroStrategy (MSTR) added 5%.
The crypto rally coincided with a broader equity market recovery, as the Nasdaq climbed 2.6% and the S&P 500 rose 1.5% following last week’s sell-off.
Market optimism was further fueled by comments from San Francisco Fed President Mary Daly, who expressed support for a December interest rate cut, citing concerns over the labor market. Daly’s stance, aligned with Fed Chair Jerome Powell, strengthened traders’ expectations. According to CME FedWatch data, the market now prices an 85% probability of a 25-basis-point cut at the December 10 meeting, up from 42% a week ago.
Relief Rally Faces $100K Challenge
Despite the gains, analysts caution that Bitcoin faces a significant resistance near $100,000.
“After being caught in the macro unwind, the market is finally positioned for consolidation,” said Jasper De Maere, OTC trader at Wintermute. He noted that neutral-to-negative funding rates, lower leverage, and healthier spot volumes indicate a more orderly market structure.
Given the spot-driven recovery and the unwinding of leverage, De Maere expects the rebound to proceed in a gradual, measured manner, rather than as a rapid surge toward new all-time highs.
