Bitcoin Stages Impressive Rebound: What’s Driving the Surge?

Following a period of significant volatility, Bitcoin mounted a powerful recovery on Thursday, catapulting past the psychologically significant $91,000 threshold with a single-day surge exceeding 4.6%. This dramatic upswing marks a stark reversal from recent lows around $80,000. The critical questions now are what catalyzed this rapid price appreciation and whether the leading cryptocurrency can sustain its current momentum.

The primary catalyst for this latest rally appears rooted in macroeconomic speculation. A growing consensus among market participants suggests the U.S. Federal Reserve may implement an interest rate cut in the coming month. Such a shift toward a more accommodative monetary policy would create a significantly more favorable environment for risk-sensitive assets like Bitcoin. This anticipation is currently channeling substantial capital back into the crypto markets.

Concurrently, a major consolidation is unfolding in Asia. Reports indicate that Naver Financial is nearing an acquisition of the operator behind Upbit, South Korea's largest cryptocurrency exchange. Valued at nearly $10 billion, this deal holds the potential to substantially enhance Bitcoin's liquidity across the region.

Institutional Capital Makes a Return

A key driver behind the price recovery is a resurgence of inflows into spot Bitcoin exchange-traded funds (ETFs). On November 26 alone, U.S. Spot Bitcoin ETFs witnessed net inflows of approximately $21 million. BlackRock's iShares Bitcoin Trust (IBIT) led this charge, attracting around $43 million. This influx represents a definitive break from the substantial outflows that had pressured markets throughout mid-November.

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Technical indicators also signal improvement. The Relative Strength Index (RSI) has rebounded from deeply oversold levels of 23 points observed earlier in the month to a more moderate reading between 37 and 40 points. This suggests that selling pressure is abating, even if market sentiment remains far from euphoric.

Analysts Advocate for Cautious Optimism

Despite these encouraging signals, market experts advise against unchecked optimism. Analytics firm Glassnode characterizes the current phase as a "defensive consolidation." While a full-scale market capitulation has been avoided, Bitcoin must reclaim higher cost-basis levels to confirm a renewed bull market.

The coming sessions will be decisive. A sustained hold above $91,500 could pave the way for a test of the $98,000 resistance level. Conversely, a failure to maintain this footing might trigger a retest of the key support zone near $86,000. One reality remains constant: volatility persists at elevated levels, carrying with it the inherent risk of sharp price movements in either direction.