Bitcoin (BTC) rose over 2% in the past 24 hours, reclaiming $92,000 after falling to a low of $89,257 on Thursday. Analysts attributed the bounce to positive regulatory developments, a jump in regional equities, and risk appetite returning. The crypto market registered a sharp drop on Thursday as the Dow Jones Industrial Average jumped to a new record.
However, BTC has stabilized between $90,000 and $92,000 with analysts expecting a larger rally following the Federal Reserve’s third rate cut of the year.
CFTC Withdraws Outdated Bitcoin Guidance
The United States Commodity Futures Trading Commission (CFTC) has scrapped its “actual delivery” guidance for Bitcoin and other digital assets. The withdrawal sets the stage for a broader shift in how the agency views and regulates the crypto market. Acting Chair Caroline Pham withdrew the framework on December 11, calling it outdated and inconsistent with the market’s current level of maturity. The move is in line with the Trump administration’s efforts to remove overly complex rules that deterred crypto firms from setting up operations in the US. Pham added that eliminating such barriers shows
real progress can be made to protect Americans by promoting access to safe U.S. markets.
The guidance defined conditions under which a leveraged or margined crypto purchase was considered an “actual delivery,” a 28-day delivery standard that required the buyer to have possession and control of the asset. The guidance was issued when regulators were unsure about how crypto markets would develop, and placed them in a separate category. According to Pham, the CFTC’s experience with virtual currency derivatives listings, coupled with market growth and stronger custody practices, made the standard incompatible with the industry. Digital assets will now be regulated under the CFTC’s general, technology-neutral framework, reducing the compliance burden on exchanges.
Silk Road-Linked Bitcoin Wallets Stir After Years Of Dormancy
Two Bitcoin wallets linked to Silk Road moved a significant amount of crypto in May, with more activity recorded on December 10. According to data from the Digital Watch Observatory, the wallets moved 3,421 BTC in May, including a 2,343 BTC transfer at block 895,421, redirecting the funds to a new SegWit address. An on-chain forensic analysis revealed 31 consolidated outputs to a new P2WPKH destination, consistent with internal custody management rather than an immediate sale. On-chain analysts reported another consolidation of funds on December 10 from over 300 wallets linked to Silk Road.
According to blockchain data, the wallets used in May were created in July 2013 and lay dormant for 12 years before reawakening.
Binance Failed To Freeze Upbit Hack Funds
South Korean authorities have accused Binance of failing to comply with an emergency request to freeze assets stolen during the Bybit hack. According to the authorities, Binance froze only 17% of the funds traced to the platform. Upbit and South Korean law enforcement agencies had asked Binance to freeze around 470 million won (about $370,000) worth of Solana-based assets on the day of the hack. However, the platform froze only 80 million won, citing the need for further verification before freezing more funds.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered a brief bounce on Wednesday after the Federal Reserve announced a 0.25 bps rate cut. However, it lost momentum after Fed Chair Jerome Powell acknowledged a weaker-than-expected labor market and higher-than-acceptable inflation levels. Volatility persisted on Thursday as the flagship cryptocurrency slipped below $90,000 before rebounding to $92,542. BTC is marginally down during the ongoing session, trading around $92,193.
Glassnode data revealed that Bitcoin whales redistributed or sold 36,500 BTC (approx. $3.4 billion) since December 1. The selling coincides with Bitcoin’s failure to pierce $94,000 following Wednesday’s rate cut. Akshat Siddhant, lead quant analyst at Mudrex, stated,
Bitcoin is trading steadily near $92,000 as markets digest the Fed’s rate cut alongside its plan to inject liquidity by purchasing $40 billion in Treasury bills each month. While this liquidity boost will have a stronger long-term impact, near-term sentiment is also improving, supported by renewed institutional flows.
While BTC is struggling to regain momentum, analysts expect a larger recovery after three consecutive rate cuts between September and December. While rate cuts are bullish for crypto, the cuts triggered a short-term selloff, a classic
by the news, sell the rumor
pattern. However, Santiment analysts stated that there is typically a bounce after the dust settles.
The US Fed made three strategic cuts over the past 3 months, resulting in a total of 0.75% reduction to interest rates. Even though these cuts are objectively seen as bullish long-term for crypto markets, we’ve seen short-term “buy the rumor, sell the news” effects on each of these events. However, there is typically a bounce after the dust settles.
CoinEx chief analyst Jeff Ko explained the absence of a sustained rally following the rate cut, stating that it was widely expected and already priced in by the market. However, CoinEx’s updated dot plot indicated Fed policymakers were leaning slightly hawkish. Ko also explained that the short-term Treasury purchases were a maneuver to lower short-term rates and not a large-scale stimulus-driven program. Ko added,
But the markets interpreted this as mildly bullish, with US stocks moving higher and helping Bitcoin stage a rebound alongside broader risk sentiment.
BTC started the month in the red, dropping to a low of $83,800 before settling at $86,282. The price recovered on Tuesday, rising nearly 6% to reclaim $90,000 and settle at $91,308. Buyers retained control on Wednesday as BTC rose 2.35% to $93,453. However, it lost momentum on Thursday, dropping 1.46% to $92,093. Selling pressure intensified on Friday as BTC fell almost 3%, slipping below $90,000 to $89,345.
Source: TradingView
BTC started the weekend with a marginal decline on Saturday. Volatility returned on Sunday, reaching an intraday high of $91,779, dropping to an intraday low of $87,733, before reclaiming $90,000 and moving to $90,402. Buyers retained control on Monday as the price reached an intraday high of $92,291 before settling at $90,653. Bullish sentiment intensified on Tuesday as BTC rose 2.25% to $92,690. The price reached an intraday high of $94,500 on Wednesday but lost momentum, settling at $92,035. The flagship cryptocurrency plunged to a low of $89,257 on Thursday with volatility and selling pressure persisting. However, it rebounded from this level to reclaim $92,000 and settle at $92,542. BTC is marginally up during the ongoing session, trading around $92,573 as it struggles to build momentum and retest the $94,000 resistance.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
