Bitcoin moved higher on Tuesday, extending its recovery from recent losses. Renewed confidence in a potential December interest rate cut by the U.S. Federal Reserve supported demand for risk assets, helping lift the cryptocurrency.
However, the upward momentum appeared limited. Many investors remained cautious after the sharp declines seen in October and early November.
Altcoins posted stronger gains during the session, yet they were still recovering from significant monthly losses.
Bitcoin rose 0.8% to $88,187.9 by 00:43 ET (05:43 GMT).
Rate-cut expectations fuel Bitcoin’s rebound
The recent rebound from a seven-month low was driven mainly by rising expectations of a December rate cut. At least two Fed officials signaled support for easing next month, prompting traders to increase their bets.
CME FedWatch data showed that markets now price in a 77.2% chance of a 25-basis-point cut at the December 9–10 meeting, sharply higher than the 41.8% probability recorded last week.
This shift in sentiment boosted broader risk markets, with crypto participating in the recovery.
Still, the rally across digital assets lagged behind gains in equities, especially in the technology sector. Crypto, which often mirrors tech performance, has been gradually diverging from the sector since early October.
Bitcoin and the wider market have been under sustained pressure since October. Retail traders grew more cautious after a flash crash early in the month, while institutional interest faded. U.S.-listed Bitcoin ETFs have logged five straight weeks of outflows, further weighing on sentiment.
Attention now turns to upcoming U.S. economic data ahead of the Fed’s December meeting. September producer inflation and retail sales figures are due later on Tuesday. The PCE price index, the Fed’s preferred inflation measure, is expected on Thursday.
Crypto prices today: altcoins lead modest recovery
Altcoins outperformed Bitcoin on Tuesday as bargain hunters stepped in.
Ether, the second-largest cryptocurrency, climbed 3.2% to $2,928.08. XRP posted an 8.7% jump to $2.2523.
Solana, Cardano, and BNB saw gains between 1% and 5%.
Among meme tokens, Dogecoin rose 3.1%, while $TRUMP slipped 0.5%.
