Bitcoin Price Jumps. What Cryptos Need for a Sustained Rally. — Barrons.com
By Callum KeownBitcoin and other cryptocurrencies were jumping early Monday as digital assets looked to mount another rebound ahead of the Federal Reserve's final interest-rate decision of the year.Bitcoin was trading at $92,018 early in the day, up more than 3% over the past 24 hours after slipping below $88,000 at one point on Sunday. The world's largest cryptocurrency has struggled to move above the $94,000 level despite getting close on several occasions in recent weeks. It remains 27% off its record high above $126,000 reached in October.Ethereum was up 4% at $3,158, while popular altcoin XRP rose 3.4% to $2.10.A Fed rate cut could help keep the momentum going. Cryptocurrencies typically get a boost from lower borrowing costs as it makes them more attractive relative to lower-yielding assets. Markets are pricing in an 87% chance the central bank cuts interest rates by a quarter-point on Wednesday.But that assumption has been baked in for a while and hasn't sparked a sustained crypto comeback yet.However, the path for Bitcoin may be a bit more complicated than that."A large share of Bitcoin is currently held at a loss, so each move toward $96,000-$100,000 meets selling from holders who want to exit at break-even," said Arthur Azizov, founder of B2 Ventures.Those dynamics go some way to explaining the disconnect between the stock market and cryptos, he added. The S&P 500 is up 17% in 2025, while Bitcoin is down around 1.4%."I see an idling, maybe even stagnating market. Only a strong move above $100,000 could flip the script, restore confidence, and open the way toward $120,000+ level," he said. But if that fails, he sees another pullback — this time to around $82,000 to $88,000.Write to Callum Keown at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.