Bitcoin's price has rebounded sharply today, December 3, 2025, trading around $91,000–$92,000 after dipping below $86,000 on December 1. This marks a roughly 6–7% gain from yesterday's close, driven primarily by positive regulatory signals and broader market optimism. Here's a breakdown of the key factors:
Regulatory Tailwinds
- SEC's Innovation Exemption Tease: New SEC Chair Paul Atkins indicated in a recent interview that details on an "innovation exemption" for crypto firms are forthcoming. This would ease compliance burdens for digital asset companies, boosting investor confidence in a more friendly U.S. regulatory environment.
- Vanguard's Crypto Pivot: Vanguard Group announced it will now allow trading of crypto-heavy ETFs and mutual funds on its platform—a significant shift from its prior crypto skepticism. This opens the door for trillions in traditional investor capital to flow into Bitcoin and related assets.
Macro and Market Sentiment
- Fed Rate Cut Expectations: Markets are pricing in a near-90% chance of a 25 basis point Federal Reserve rate cut at its December meeting, the third since September. This dovish outlook, combined with speculation around quantitative tightening ending December 1, is fueling risk-on bets across assets, including Bitcoin.
- Post-Selloff Bounce: The uptick follows a December 1 plunge tied to MicroStrategy's debt concerns and yen carry trade unwind fears, which liquidated ~$1 billion in leveraged positions. Negative funding rates and "extreme fear" in sentiment (per the Crypto Fear & Greed Index) suggest oversold conditions, prompting bargain hunting.
These developments have also lifted crypto-related stocks, with Coinbase (COIN) up over 3% and Ethereum surging 9%. Analysts see Bitcoin potentially range-bound near $90,000 through year-end but eyeing $135,000 in 2026 if Fed policy remains accommodative. Keep an eye on upcoming Fed announcements for further volatility.
