Bitcoin moved higher on Monday, bouncing back from a small weekly decline. Investors stayed confident that the U.S. Federal Reserve is set to deliver an interest-rate cut later this week.
However, the gains remained limited. Traders stayed cautious after mixed comments from policymakers reduced some of the earlier optimism.
By 02:08 ET (07:08 GMT), Bitcoin was trading 2.2% higher at $91,398.6. The world’s largest cryptocurrency managed to recover after dropping below $84,000 last week. That brief pullback followed a tough November, keeping market sentiment tense.
Fed Expected to Cut Rates This Week
Expectations for a Fed rate cut stayed strong. Softer U.S. economic data in recent weeks has supported these bets. Investors now estimate an 87% chance of a 25-basis-point cut at the Fed meeting ending on December 10. Cooling inflation has reinforced these expectations.
On Friday, the core Personal Consumption Expenditures (PCE) index — the Fed’s preferred inflation measure — rose 0.2% month-on-month. The annual rate eased to 2.8%. These figures strengthened the view that inflation continues to moderate.
Lower interest rates usually help risk assets. Still, traders remain alert. Conflicting public statements from Fed officials have created uncertainty about how quickly or aggressively policy might be eased in 2026.
Bitcoin began rising sharply at the end of 2024 as expectations for a Fed pivot gained momentum. Easier financial conditions are considered a major driver. Falling rates typically weaken the dollar and increase the appeal of non-yielding assets such as Bitcoin. If economic data keeps softening, this trend could support further gains.
Market focus will now shift to the Fed’s upcoming statement and to comments from Chair Jerome Powell later this week.
Crypto Prices Today: Altcoins See Modest Gains
Altcoins also moved higher, though most traded within tight ranges.
Ethereum, the second-largest cryptocurrency, rose 3% to $3,127.92.
XRP, the third-largest token, gained 2.5% to reach $2.08.
Solana and Cardano were both up 2%, while Polygon traded mostly flat.
Among meme tokens, Dogecoin added 1.5%, while $TRUMP slipped 0.5%.
