A Cautious Recovery for Cryptos Ahead of Fed Meeting

BTC is stabilising after last week’s washout, but with technicals tilting negative and ETF flows turning south, traders are betting more on the 2026 macro reboot than on any December breakout.

Bitcoin recovered to above $92,000 on Monday after a see-saw week, with the top cryptocurrency token gaining more than 6% over the past week. After falling to a low of below $84,600 last week, Bitcoin climbed to above $93,800 before paring some of those gains.does not produce yield, gold may fall behind in a disinflationary environment and a strong currency.

Even while some analysts predict that gold will hit $4,000 per ounce, marking a 5% fall from current levels, Bitcoin is establishing itself as a trustworthy store of wealth alongside the dollar, which could cause adjustments in gold prices.

The relevance of the usual four-year Bitcoin cycle is diminishing. Elevated rates, less liquidity, and more gradual market recoveries define the current situation.

The current consensus among analysts is that prices will stabilise between $100,000 and $120,000 by the end of 2025, with a possible second peak in 2026 if liquidity returns, rather than a dramatic spike.

Despite systemic economic difficulties, institutional adoption is increasing. Bitcoin ETFs have seen massive inflows since their approval, and many businesses are boosting their already sizable digital asset holdings. This provides more consistent pricing and less volatility as compared to previous time periods.

In July 2025, the GENIUS Act formally allowed stablecoins to be used for federal payments.

White House records show that issuers must maintain full reserves in cash or short-term Treasuries as a matter of law. Due to the clear regulations that govern stablecoins, US banks and institutions are quickly adopting them.

On the flip side, Bitcoin is currently positioned at a crucial point that experts suggest may influence the market's ability to maintain its overall upward trajectory or revert to the lows seen recently.

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