Bitcoin surged back above $92,000 on Wednesday, rebounding sharply after briefly dipping below $84,000 at the start of the month. The rally reflected a return of risk appetite, supported by expectations of further US Federal Reserve rate cuts. Markets currently assign roughly an 89% probability to a 25 basis point Fed cut next week, with about 90 basis points of total easing priced in for 2026. Dovish sentiment was further reinforced by speculation that White House economic adviser Kevin Hassett could be nominated as the next Fed chair, given his support for faster rate reductions. Gains were also bolstered by positive industry developments, including US SEC Chairman Paul Atkins signaling plans for an “innovation exemption” for digital asset companies and Vanguard Group announcing that ETFs and mutual funds primarily holding cryptocurrencies will be tradable on its platform.
