Bitcoin falls as crypto rebound stalls. Why it may quickly restart.
December 5, 2025
Bitcoin and other digital assets fell early Friday as the latest cryptocurrency rebound proved to be another false dawn—for now.
Bitcoin was trading at $91,250 early in the day, down 1.9% over the past 24 hours, according to CoinDesk data. The world’s largest cryptocurrency climbed as high as $93,966 on Thursday, recovering from lows of $84,500 on Monday.
But the crypto’s latest attempt to push beyond $94,000–a level it last reached in mid-November–looks to have failed again for now.
However, that could quickly change with the Federal Reserve’s next interest-rate decision just days away on Dec.10. The central bank is widely expected to cut rates by a quarter-point–lower borrowing costs tends to boost crypto assets, making them attractive relative to lower-yielding alternatives.
Key inflation data due Friday could shift rate expectations and potentially support another crypto comeback. That’s if the Fed’s preferred inflation metric–core PCE–comes in cooler-than-expected on Friday and increases the chances of a rate cut in January as well as next week.
Failing that, a cut by the Fed on Wednesday could give the green light for a risk-asset rally into the end of the year.
“Liquidity and sentiment remain fragile, so we don’t view this as a full recovery just yet,” Gracy Chen, CEO of crypto exchange Bitget said. “If the Fed confirms at least one rate cut, likely in December, the early-2026 period should stay favorable for both tech giants and digital assets.”
Ethereum, the second largest cryptocurrency, was down 1.6% at $3,135, while popular altcoin XRP slipped 3.8% to $2.07.
Write to Callum Keown at callum.keown@dowjones.com
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