Bitcoin Struggles to Hold Gains as Markets Brace for Fed Decision

Bitcoin (BTC) attempted a modest weekend rally, briefly pushing above the $90,000 level, but the momentum faded quickly as U.S. trading opened Monday. By the close of the U.S. stock session, BTC hovered near $90,500, reflecting a 1% decline over the past 24 hours and signaling continued uncertainty in the crypto market.

Major altcoins also lost steam, though Ethereum (ETH) showed relative strength by reaching its highest price ratio against BTC in over a month. Privacy coin Zcash (ZEC) and the Canton Network’s CC token stood out with double-digit gains, even as the broader crypto market—tracked by the CoinDesk 20 Index—slipped 0.8%.

Global macroeconomic pressures added to the cautious sentiment. Long-duration government bond yields surged, fueled by concerns that volatility in Japanese bonds could ripple into other markets. The U.S. 10-year Treasury yield climbed to 4.19%, its highest in nearly three months, while Japan’s 10-year yield approached the 2% mark for the first time in almost 20 years. Equity markets followed suit, with the S&P 500 falling 0.5% and the Nasdaq sliding 0.3%.

The market’s attention now turns to the final Federal Reserve meeting of the year. A 25-basis-point rate cut is widely expected, but traders are watching for clues about the Fed’s future policy path. Analysts warn that dovish signals could support crypto prices, while any unexpected hawkishness may increase selling pressure.

Despite bitcoin’s rebound from November lows, Bitfinex analysts caution that structural weaknesses persist. They note continued outflows from U.S. spot bitcoin ETFs, over seven million BTC sitting at unrealized losses, and slowing capital inflows compared to previous cycles. These factors suggest fragile market conditions and heightened sensitivity to external shocks.

With spot demand weakening and risk markets showing mixed signals, bitcoin enters year-end trading under pressure, facing a challenging backdrop shaped by macro uncertainty and cautious investor sentiment.