Topline
Bitcoin rose more than 4% on Tuesday—to above $94,000 at times—as the broader cryptocurrency market rebounded on the possibility that the Federal Reserve will cut rates during their meeting Wednesday.
TOPSHOT – An illustration photograph taken on November 22, 2025, shows a gold plated souvenir Bitcoin coin reflected in a mirror and arranged for a photograph in front of a computer screen displaying the Bitcoin monthly price chart in a residential property in Guildford, south of London. The value of bitcoin has fallen sharply since reaching record heights last month, above $126,000 at the start of October. (Photo by Justin TALLIS / AFP via Getty Images)
AFP via Getty Images
Key Facts
Bitcoin was up 4.5% in the past 24 hours, as of 2 p.m. EST, when it was trading just below $94,000.
Ether, the world’s second most-valuable cryptocurrency by market capitalization, rose 9% to $3,377, while other major tokens like Solana, XRP and Binance BNB all spiking 6%, 4%, and 3% respectively.
The Federal Reserve is set to make an interest rate decision at its meeting Wednesday, with economists overwhelmingly predicting a third consecutive rate cut, according to data from CME Group.
Cryptocurrency markets often respond positively to Federal Reserve rate cut decisions because lower rates increase investor appetite for riskier assets due to the potential for better returns.
Key Background
Crypto markets have somewhat stabilized on the back of a record-breaking downturn in November, a month that marked bitcoin’s worst monthly performance since the crypto market crash in 2022. September’s rate cut triggered a brief reprise in the crypto market, with bitcoin and ethereum posting gains after the Fed’s decision, while October’s decision had little to no effect on markets. Bitcoin ETF demand, which surged at the beginning of the year, has cooled considerably in recent weeks, with U.S.-listed bitcoin ETFs seeing $5.2 billion in net outflows since Oct. 10, and ether ETFs losing $2 billion in the same time. Gold prices also surged on traders’ optimism ahead of the Federal Reserve’s interest rate decision.