On December 7, 2025, the crypto market experienced intense volatility. Bitcoin’s price briefly dropped below $89,000 during trading, major asset trading volumes were “halved,” and approximately 100,000 people were liquidated across the network, with total liquidations amounting to about $111 million. The core driving force behind this fluctuation was the market’s high expectations for the upcoming Federal Reserve policy meeting scheduled for December 9-10, with the odds of a December rate cut rising to around 87%.

Today’s Performance: Tug of War Between Bulls and Bears Amid Volatility

Today (December 8), the market continued its recovery momentum, but sentiment remains cautious. Major asset prices generally moved higher, with Bitcoin breaking above $91,000 at one point and Ethereum simultaneously surpassing $3,100. However, market sentiment has not turned fully optimistic, as the Fear & Greed Index remains at 22, in the “mild fear” zone, indicating investors are remaining vigilant ahead of the upcoming Fed decision.

Policy and News: Fed Decision Is the Biggest Variable

Market sentiment is almost entirely shaped by expectations for the Federal Reserve’s December 9-10 policy meeting. A 25 basis point rate cut remains the dominant scenario in market pricing, with investors leaning toward further policy easing in early 2026. These expectations have weighed on the dollar and maintained interest in defensive assets such as gold, while risk markets fluctuate within a narrow range awaiting clearer guidance.
In addition, regulatory progress in the stablecoin sector is providing long-term confidence to the market. The US “GENIUS Act” has passed the Senate, and Hong Kong, the United Kingdom, and others have also rolled out stablecoin regulatory frameworks. This marks the transition of stablecoins from a gray area into a legally regulated domain, helping to consolidate the US dollar’s position in the global monetary system.

Outlook for Today’s Potential Market Movements

Overall, the market may present the following scenarios today:
Sideways consolidation: Ahead of the Fed decision, the market may continue to oscillate near $91,000, waiting for clearer signals.
Narrow-range fluctuations: Since trading volumes have not fully recovered, market liquidity may remain limited, resulting in small price swings.
Potential breakout: If sentiment improves further, Bitcoin may test resistance at $92,000-$95,000, but a breakout would require strong buying support.
From a technical perspective, Bitcoin is still in an 18-month-long “cup-and-handle” consolidation pattern, and recent pullbacks are considered normal corrections. However, probability models show that the likelihood of Bitcoin dropping toward the previous low of $82,000 (57%) is still higher than the likelihood of a rebound breaking above $100,000 (28.8%).

Summary

After yesterday’s intense volatility, today the crypto market is showing a “down first, then up” oscillating pattern. Market sentiment is dominated by expectations for a Fed rate cut, but the Fear & Greed Index remains low, reflecting cautious investor attitudes. Although Bitcoin’s price has rebounded, resistance remains overhead, and today’s trend will depend heavily on changes in market sentiment and capital flows ahead of the Fed meeting. Barring unexpected news, the market may continue consolidating around $91,000, awaiting next week’s key decision. #十二月行情展望 #加密市场回暖 #比特币行情观察