Bitcoin reverses last week's losses and seeks stability around $87K

Bitcoin recovers to $87.000, driven by institutional accumulation and expectations of a more accommodative Fed policy, although the market maintains a technical sentiment of extreme fear.

The cryptocurrency market has started the week with a significant change in tone, marked by a structural recovery in the price of its main asset. Bitcoin has managed to reclaim the $87.000 zone During Tuesday's trading session, leaving behind the uncertainty that dominated last week, when the price fell to a low of $80.900.

According to experts, current price action suggests that the defense of support at $80.000 was successful, allowing the leading cryptocurrency to build a solid foundation for further upward momentum. However, what defines this market moment is not just the price of BTC, but the combination of macroeconomic factors and strategic moves within the ecosystem that are driving this rise. Analysts are closely observing how The global financial narrative is once again aligning in favor of risk assets, just as the fiscal year is nearing its end.

Favorable winds for Bitcoin and cryptocurrencies from the Federal Reserve

The main driver behind the renewed confidence in Bitcoin and cryptocurrencies stems from expectations about US monetary policy. 

Investors have begun to more heavily price in the possibility that the Federal Reserve will announce another interest rate cut at its next meeting in December. If this decision is confirmed, it would be the third rate cut in 2025, consolidating a cycle of easing that has historically benefited scarce and decentralized assets like Bitcoin.

The logic behind this optimism lies in liquidity. A lower interest rate environment reduces the appeal of government bonds and traditional savings instruments, pushing capital to seek returns in alternative markets. The prospect of a cheaper dollar and more accessible credit acts as a direct catalyst for capital inflows into the crypto ecosystem. 

Furthermore, the market perceives the Federal Reserve as committed to supporting the economy, reducing fears of a severe recession. This increases institutional investors' willingness to take risks, giving Bitcoin room to move away from immediate selling pressure and focus on overcoming key technical resistance levels.

Whales lead Bitcoin's recovery

Beyond what the economic headlines show, a deeper look at on-chain data reveals an asset movement full of intentionality and strategy. Far from a recovery driven by the emotion of small investors, it is the large "whales" who are calling the shots. 

Since November 11, wallets holding more than 100 BTC have been steadily accumulating, taking advantage of the low prices of previous days to bolster their Bitcoin positions.

According to CryptoQuant analysts, this behavior contrasts sharply with that of retail investors. While large entities have been absorbing the available supply, portfolios with smaller holdings have decreased, suggesting that the average investor sold their positions during the drop to $80.900. comportamiento describe a wealth transfer from less experienced hands, susceptible to short-term panic, to large capital investors who operate with a long-term investment thesis and greater tolerance for volatility. 

Furthermore, experts believe this divergence is a sign of underlying strength, as bull markets are typically built on the foundation of quiet institutional accumulation, while the general public still doubts the sustainability of the trend.

Fear still dominates the crypto market

Despite the 7% recovery and Bitcoin's return to $87.000, market psychology remains deeply fractured. A key indicator for measuring sentiment, the Fear and Greed Index, scores 15 today, placing the market in a highly volatile position.in a territory of "Extreme Fear". 

Experts find this situation curious, because while the price is rising steadily, most market participants feel distrustful and cautious. Normally, a rise in Bitcoin's price sparks optimism and greed, but the recent market correction was so sharp that many remain on high alert.

This disparity between rising prices and widespread pessimism is interpreted by analysts as a positive sign for continued growth. Historically, market peaks often coincide with exaggerated enthusiasm, while troughs and genuine recoveries are forged amid skepticism and doubt. Bitcoin's upward trend without premature investor euphoria suggests there is still room for further gains before sentiment becomes fully bullish.