Bitcoin’s recent price trajectory has captured the attention of traders and analysts alike, particularly as it dipped below the $90,000 threshold amid market fluctuations. As of November 24, the digital asset was priced at $88,187.9, marking a modest increase of 0.8% as the market reacted to evolving monetary policy expectations.
Notable insights from Arthur Hayes, co-founder of Bitmex and Chief Investment Officer of Maelstrom, shed light on the current landscape. In a post shared on the platform X, Hayes suggested that while Bitcoin might experience another decline towards the low $80,000s, he firmly believes that the $80,000 level will act as a robust support base.
This analysis is further bolstered by the Federal Reserve’s impending policy shifts. On December 1, 2025, the central bank is set to conclude its quantitative tightening efforts, marking the end of a lengthy period of balance sheet reduction that has put pressure on liquidity.
In a positive sign for economic expansion, U.S. banks reported an increase in lending activities during November. This surge in credit formation, coupled with the Fed’s policy change, is anticipated to reshape liquidity conditions across financial markets.
Heightened Rate Cut Expectations Spark Market Recovery
Bitcoin’s gradual recovery from recent seven-month lows is being fueled by renewed optimism surrounding an anticipated interest rate cut from the Federal Reserve. Following comments from at least two Fed officials supporting a rate reduction next month, market pricing now indicates a 77.2% probability of a 25 basis point cut during the Fed’s upcoming December 9-10 meeting, a significant rise from only 41.8% the previous week.
Hayes shared that he might consider purchasing Bitcoin at current levels but intends to reserve larger transactions for early next year. With the possible approach towards $80,000, he views this period as an accumulation opportunity, particularly as liquidity conditions shift.
Crypto Market Displays Varied Performance
While Bitcoin fluctuates, the broader cryptocurrency market has shown mixed performance. On this particular Tuesday, Ethereum (ETH) gained 3.2% to reach $2,928.08, and XRP soared by 8.7% to $2.2523. Other notable cryptocurrencies, including Solana, Cardano, and BNB, recorded gains ranging between 1% and 5%, while meme tokens such as Dogecoin rose by 3.1%. Conversely, $TRUMP experienced a slight decline of 0.5%.
In recent weeks, Bitcoin and the larger crypto market have faced downward pressure, particularly following a flash crash in early October. This has led retail investors to exercise caution, with U.S.-listed Bitcoin exchange-traded funds witnessing five consecutive weeks of capital outflows as institutional interest waned.
Despite these challenges, the crypto sphere has notably lagged behind the recent recovery trends seen in technology stocks. Historically, cryptocurrencies often move in sync with tech equities, yet this correlation appears to have weakened since early October.
As the market anticipates further U.S. economic data releases, including producer inflation and retail sales figures for September, traders remain vigilant ahead of the pivotal December meeting of the Federal Reserve. The release of the PCE price index data, which is a key inflation indicator for the Fed, is also scheduled for this week. How these economic indicators play out in relation to upcoming policy decisions could significantly impact both Bitcoin and the broader cryptocurrency landscape.
