Bitcoin moved higher on Thursday, climbing back above the $90,000 level as stronger expectations of a U.S. Federal Reserve rate cut boosted investor demand. Renewed optimism helped lift the cryptocurrency after a shaky performance last week.
By 01:54 ET (06:54 GMT), Bitcoin was trading 4% higher at $91,201.6, extending its recovery. The coin had dropped to nearly $80,000 last Friday, its lowest point since April, before reversing sharply on hopes that the Fed may ease policy in December.
Fed Rate-Cut Expectations Rise
Market expectations for a rate cut have increased rapidly. Traders now see an 85% chance of a 25-basis-point reduction, up from just 44% a week ago. Lower interest rates typically support risk assets like Bitcoin by adding liquidity and pushing investors toward higher-return alternatives.
Still, caution persists. Inflation remains stubborn in the U.S., and economic data has been uneven. This uncertainty has raised doubts about how aggressively the Fed will move and whether Bitcoin’s latest rebound is a sustained trend or a short-term correction.
Optimism grew further as Kevin Hassett emerged as a potential candidate for the next Federal Reserve Chair. Hassett is viewed by many as more supportive of looser monetary policy, which could strengthen the long-term outlook for Bitcoin and other risk-sensitive assets.
Naver Financial Strikes $10 Billion Upbit Deal
In a major development for the digital-asset industry, Naver Financial — the payments division of South Korea’s tech giant Naver Corp (KS:035420) — announced plans to acquire Dunamu, the operator of leading crypto exchange Upbit. The deal is valued at approximately $10 billion.
The acquisition will occur through a stock swap, making Dunamu a fully owned subsidiary of Naver Financial. Both firms said the merger will connect Naver’s large digital-payments network with Upbit’s dominant role in South Korea’s cryptocurrency market.
If approved by regulators, the move will represent one of the country’s largest fintech and blockchain consolidations, positioning Naver to expand into emerging crypto-powered financial services.
Crypto Market Today: Altcoins Gain Ground
Altcoins followed Bitcoin higher on Thursday as risk appetite improved across the market.
Ethereum increased 3% to $3,030.92, while XRP added 0.5% to reach $2.21.
Solana rose 3%, Cardano gained 2.2%, and Polygon advanced 1%.
Among meme coins, Dogecoin climbed 1.3%, while the $TRUMP token traded mostly flat.
