The crypto market is showing signs of recovery ahead of a major week for U.S. economic data. Bitcoin climbed back above $87,000, gaining nearly 2% in the last 24 hours as traders positioned themselves for upcoming inflation and labor market reports that could influence the Federal Reserve’s next policy steps.
Bitcoin’s rebound from its recent drop to $80,000 helped lift the broader market, which rose around 1.5%. Trading volumes also surged by almost 50%, pointing to renewed engagement across major assets. Analysts note that part of the weekend rally came from strengthening institutional activity, with U.S. spot Bitcoin ETFs recording inflows of about $238 million. Lower weekend liquidity, however, often amplifies price swings.
Improving expectations around a potential Fed rate cut added another boost to market sentiment. Current pricing shows a 67% chance of a rate reduction in December. Optimism also increased after BlackRock submitted a filing for a staked Ethereum ETF, offering an estimated yield between 3% and 4%.
This week’s market direction will largely depend on three major U.S. economic updates: the Producer Price Index, weekly jobless claims, and the Personal Consumption Expenditures (PCE) inflation report—widely viewed as the Fed’s preferred inflation gauge.
- The PPI, set for release on November 25, will indicate whether inflation pressures are accelerating.
- Jobless claims, coming on November 26, may influence expectations for rate cuts if unemployment figures rise.
- The PCE report will likely create the most direct market impact, as any upside surprise typically sparks volatility across Bitcoin and leading altcoins.
Market analysts remain divided on whether the current rebound can hold. Oleg Kalmanovich believes that the PCE report and recent U.S. retail sales data will determine the market’s short-term direction. Weak economic results could strengthen the case for a December 10 rate cut, while stronger data could extend pressure on crypto into early 2026.
Data from CryptoQuant shows that many short-term holders have already capitulated, a trend that often precedes a short-term bounce. Still, analysts warn that a drop below the critical $80,000 support level could trigger a deeper correction.
