Bitcoin holds at $87,000, but price won’t ‘explode’ to record heights anytime soon, analysts say

Core Insights - Bitcoin is currently trading near $87,000 after a five-day rally, recovering from a 30% decline from October's highs, but analysts suggest that significant price movements may not occur until 2026 [1][2] - The total market value of cryptocurrencies has risen to $3.1 trillion, supported by a rebound in global stock markets and expectations of a Federal Reserve interest rate cut in December [2] - Despite recent inflows of $129 million into US spot Bitcoin ETFs, there has been a significant outflow of nearly $3.6 billion from Bitcoin ETFs in November, marking it as the worst month for sell-offs since February [3] Market Sentiment - A decisive reclaim of the $90,000 level in December could enhance trader sentiment and alleviate concerns about a potential "crypto winter" in 2026, although historically, December has shown average returns of under 5% since 2013 [4] - Traders in the options market are positioning for Bitcoin to potentially reach $118,000, but do not expect it to surpass that level significantly [5] Macroeconomic Factors - Recent comments from Federal Reserve officials indicate potential interest rate cuts in the near term, with the CME FedWatch tool showing an 83% probability for a 0.25% cut in December [6] - The upcoming Federal Open Market Committee meeting is scheduled for December 9 and 10, which could influence market expectations [6] Crypto Market Performance - Over the past 24 hours, Bitcoin has increased by 0.4%, trading at $87,100, while Ethereum has risen by 1.5%, trading at $2,900 [7]