Bitcoin staged a modest recovery on Monday after one of its steepest weekly declines this year, but sentiment across the crypto market remains fragile. The world’s largest digital asset traded 1.4% higher at $87,050.5 by 01:25 ET (06:25 GMT), attempting to stabilize after tumbling more than 10% last week to seven-month lows near $80,000.
The rebound followed a volatile 24-hour stretch in which Bitcoin briefly fell to $88,610.4 before reclaiming the $90,000 level. Still, traders say the market continues to wrestle with heavy institutional selling pressure and shifting expectations around Federal Reserve policy heading into December.
Key drivers shaping Bitcoin’s rebound include:
- A short-term bounce after last week’s 10% decline
- Persistent institutional redemptions across U.S. spot ETFs
- Rising uncertainty over the Fed’s December rate outlook
ETF Redemptions Hit $4.34B as Volume Surges
One of the strongest headwinds for Bitcoin remains the accelerating wave of outflows from U.S.-listed spot Bitcoin exchange-traded funds. Data from SoSoValue shows these funds logged $1.22 billion in redemptions in the week ended Nov. 21, extending their losing streak to a fourth consecutive week. Cumulative withdrawals now total roughly $4.34 billion over the past month.
Yet even as assets left the sector, trading activity surged. Combined turnover across U.S. spot Bitcoin ETFs surpassed $40 billion last week—marking the highest volume ever recorded. Analysts characterize the divergence between rising volume and large-scale redemptions as a sign of “institutional capitulation,” highlighting heightened defensiveness among large investors.
Without a decisive catalyst, market strategists caution that Bitcoin’s recovery could struggle to gain meaningful traction in the coming sessions.
Fed Ambiguity Keeps Crypto Market Cautious
Macro forces are adding additional pressure. Market pricing now assigns roughly a 70% probability of a Federal Reserve rate cut in December—up sharply from 44% just a week earlier. However, the shift has done little to lift crypto sentiment, largely because Fed officials continue to signal division over the strength of inflation and the resilience of the labor market.
The recent U.S. federal government shutdown has further complicated the macro landscape, delaying key data releases and leaving investors with a limited read on economic momentum. Markets now await several important prints this week, including retail-sales and producer-prices data, which could influence expectations heading into the Fed’s final meeting of the year.
Altcoins attempted a mild rebound alongside Bitcoin, though most remained within tight ranges. Ethereum rose 1.2% to $2,842.88, XRP gained 1.7% to $2.07, Solana added 1.8%, and Cardano ticked 0.8% higher, while Polygon slipped 0.6%. Among meme tokens, Dogecoin advanced more than 2%.