Bitcoin remains consolidated under $90,000 as traders weigh macroeconomic signals, with increasing odds of a Federal Reserve rate cut potentially setting the stage for a bullish reversal. Ethereum also shows resilience, closely tracking broader crypto sentiment.
- Bitcoin is trading just below $90,000, consolidating between $87,500 and $90,200
- Probability of a Federal Reserve rate cut in early 2026 has risen to 68%
- Ethereum is trading near $3,300, up 2.1% over 24 hours
- Spot Ethereum ETFs saw net inflows exceeding $1.2 billion in November
- Market focus shifts to December CPI data and Fed Chair Powell’s statements
- Rate cut expectations may boost risk-on sentiment in crypto markets
Bitcoin is trading just below the $90,000 threshold, marking a period of consolidation after recent volatility. The digital asset has been range-bound between $87,500 and $90,200 over the past 48 hours, reflecting cautious market positioning ahead of key U.S. economic data. Meanwhile, the probability of a Federal Reserve rate cut in early 2026 has risen to 68%, according to interest rate derivatives, fueling speculation that liquidity could shift toward riskier assets like cryptocurrencies. The shift in macro sentiment is particularly notable given the Fed's previous hawkish stance. With inflation data showing a gradual cooling trend and labor market indicators softening, market participants are re-pricing expectations. This pivot could reduce the opportunity cost of holding non-yielding assets such as Bitcoin, which typically benefits during periods of easing monetary policy. Ethereum is also holding firm near $3,300, up 2.1% in the past 24 hours. The ETHUSD pair has shown stronger relative performance, potentially reflecting growing optimism around network upgrades and on-chain activity. Institutional interest in spot Ethereum ETFs, which have seen net inflows exceeding $1.2 billion in November, continues to support demand. Market watchers are now closely monitoring the December U.S. CPI report and Fed Chair Jerome Powell’s upcoming remarks for confirmation of a dovish tilt. A stronger-than-expected inflation print could delay rate cut expectations and trigger short-term pullbacks, while a softer release may accelerate the rally in both BTC and ETH.