Driven by Sharia Adoption, Fed Expectations, and Technical Momentum
After going through a prolonged period of pressure, Bitcoin has finally shown signs of revival with an increase of 2.59% in the last 24 hours, continuing a positive trend over the past seven days that reached 7.41%. Although it still recorded a monthly correction of 10%, today's movement is in line with broader market sentiment, where the overall cryptocurrency market capitalization also strengthened by 2.24%. This revival is driven by the convergence of three key factors: breakthroughs in institutional adoption in the Islamic world, expectations of looser monetary policy from the United States, and technical momentum that successfully broke through important psychological levels.
A new chapter in institutional adoption has been opened by Ruya Bank in the United Arab Emirates, which collaborated with Fuze to launch Sharia-compliant Bitcoin trading services. This progressive initiative integrates BTC as a Sharia-recognized asset into their digital banking application, building a direct bridge between traditional finance and the crypto ecosystem. This step not only targets a segment of investors prioritizing ethical and religious compliance but also solidifies the UAE's position as an inclusive global crypto hub, while also expanding Bitcoin's legitimacy into previously untouched financial realms.
On the macroeconomic side, a breath of fresh air is blowing from market expectations regarding The Fed. The Polymarket prediction platform records a 94% probability for a 0.25% interest rate cut on December 10, driven by softening labor data and an inflation trend that is starting to ease. This more accommodative monetary policy traditionally acts as a catalyst for risk assets like Bitcoin, as lower interest rates reduce the appeal of fixed-income instruments like bonds. This signal was immediately captured by the derivatives market, with open interest in BTC futures on CME surging 20% in a day, indicating a spike in leveraged betting on a continued upward scenario.
On the technical chart, Bitcoin achieved a significant milestone by breaking through the critical resistance zone at $89,500–$92,000, while also filling the price gap at CME at the $89,400 level. This breakthrough triggered the liquidation of short positions worth $119 million and was followed by large-scale accumulation signals, including a transfer of BTC worth $3.9 billion by Tether to institutional management. Technical indicators such as MACD turning positive and RSI remaining far from the overbought territory support room for further upside. However, behind this optimism lies the risk of increased leverage, as reflected in the rising funding rates and the potential for profit-taking if Bitcoin fails to maintain its position above $92,000.
The current Bitcoin rally reflects a rare harmony between policy optimism, adoption progress, and technical strength. However, the path to sustainable recovery still has to pass through a rigorous test: the ability to hold above $92,000 post-The Fed's decision, as well as confirmation from ETF fund inflows. Amid hope and caution, the market awaits whether this momentum will serve as the foundation for a new resurgence or merely a selling opportunity before the next turbulence. #BTC $BTC
