The digital asset market has shown remarkable resilience over the past week, signaling a gradual return of risk appetite among investors. Bitcoin (BTC) has successfully consolidated above the $90,000 mark, registering a 6.1% increase over the last seven days. This positive momentum extended to the broader market, with Ethereum (ETH) outperforming the leader by climbing 10.9% to reclaim levels above $3,000. Major altcoins also reflected this optimism, with Solana (SOL) rising 7.0% and BNB gaining 9.5%, suggesting a healthy rotation of capital and sustained interest in the wider ecosystem.
This price action is heavily supported by the latest U.S. macroeconomic data, specifically the Personal Consumption Expenditures (PCE) report—the Federal Reserve’s preferred inflation gauge. The Core PCE index came in at an annual rate of 2.8%, slightly below consensus, effectively giving the central bank a "green light" to ease monetary policy. With inflation stabilizing and jobless claims hitting a three-year low, the market is pricing in an 87% chance of an interest rate cut—according to the CME FedWatch Tool—during the upcoming Federal Reserve meeting scheduled for December 9th and 10th.
However, the landscape is not without caution. Analysis indicates that ETF flows have slowed compared to previous quarters, potentially leaving Bitcoin more exposed to volatility driven by derivatives and shifting sentiment. Despite this, the prospect of lower borrowing costs continues to act as a tailwind for risk assets. As the Fed prepares to announce its decision, the combination of cooling inflation and a resilient labor market suggests a favorable environment for crypto assets to maintain their current trajectory.
As investors turn their gaze to the upcoming week, the primary focal point will be the Federal Reserve's monetary policy meeting on December 9th and 10th. A confirmation of easing policy would likely reinforce the current market structure, potentially providing the necessary momentum for Bitcoin to test new highs and for Ethereum to solidify its standing above $3,000.
However, traders should remain vigilant regarding potential volatility surrounding the event. Given that recent data suggests a slowdown in institutional inflows, price action could be susceptible to rapid swings driven by the Fed's forward guidance. If Bitcoin manages to maintain its consolidation above $90,000 without significant drawdowns, the market could witness a further rotation of capital into altcoins, extending the risk-taking behavior recently observed.