Bitcoin (BTC) price has surged above $89k, indicating a renewed bullish trend. The flagship cryptocurrency turned bullish towards the end of November, following a series of significant liquidations among long traders over the past month.
Robust Fundamentals Support Bullish Outlook for Bitcoin Price
Traders are anticipating a Fed rate cut in December due to increasing global liquidity.
Bitcoin’s price is well-positioned to continue its upward trend in the coming days and weeks, driven by favorable macroeconomic conditions. Traders at Polymarket and Kalshi have raised their expectations for a 0.25% Fed rate cut in December 2025.
The likelihood of a 25 basis points Fed rate reduction next month has surged to around 80% after New York Fed President John Williams expressed his support for the cut. Additionally, New York’s pivotal role in finance and economics signals to many traders that Chair Jerome Powell’s inner circle may also back the decision at the upcoming meeting.
Meanwhile, crypto traders anticipate that the upcoming Fed’s Quantitative Easing (QE) will boost overall cash inflows amidst a rising global money supply.
Increasing Global Economic Activities
The medium-term outlook for Bitcoin remains positive, fueled by the growth in global economic activities and strong conviction in cryptocurrencies from institutional investors.
Significantly, global economic activities have rebounded notably since the resolution of tensions between China and the United States. President Donald Trump and President Xi Jinping affirmed their commitment to bilateral relations, further enhancing economic prospects.
Rising Demand from Convicted Institutional Investors
Bitcoin’s price is poised to surge towards a new all-time high as institutional whale investors show increasing interest. Michael Saylor, Strategy’s co-founder, reiterated the company’s strong financial position to acquire more Bitcoins, supported by highly liquid investors.
What’s Next?
From a technical analysis perspective, the BTC/USD pair is on the verge of a parabolic rise towards a new all-time high, similar to gold’s recent performance. Moreover, the supply of stablecoins has been increasing, indicating significant buying pressure.
