Bitcoin surged to $91,000, and market optimism may help it return to $100,000.

On Thursday, the price of Bitcoin surged to $91,000, investor enthusiasm has returned, and market observers expect its price to break the $100,000 barrier. Bitcoin has risen for six consecutive days, and analysts predict that the overall market capitalization of the crypto assets market may rebound by 25%, returning to above $4 trillion.

Industry expert Farzam Ehsani stated that this rise “is enough to push Bitcoin back above $100,000” and could bring double-digit gains to high beta altcoins. He also warned that it is still too early to assert a trend reversal, and Bitcoin must stabilize at the $90,000 level with increased retail participation in order to form a new upward cycle.

Data shows that the U.S. spot Bitcoin exchange-traded fund (ETF) saw a net inflow of $129 million on Tuesday, followed by an additional $22 million on Wednesday, ending several weeks of sell-offs. Since November, investors have withdrawn over $3.5 billion from Bitcoin ETFs, highlighting the strong volatility of the de-risking cycle.

The recovery of Bitcoin is in sync with the rebound of US tech stocks. The Nasdaq index has risen for four consecutive trading days, primarily driven by tech giants like Nvidia, Microsoft, and Apple. After Nvidia denied reports related to 'supplier financing', its stock price still performed beyond expectations, boosting market confidence. JPMorgan also stated in a report that high valuations reflect the surge in artificial intelligence capital expenditures, increased shareholder dividends, and loose fiscal policies, which are favorable for tech stocks and risk assets.

The Federal Reserve's policy also supports market sentiment. San Francisco Fed President Mary Daly expressed support for a rate cut at the next meeting, while Fed Governor Stephen Moore emphasized the stance for a “significant rate cut.” The Chicago Mercantile Exchange (CME) FedWatch tool shows that the possibility of a 0.25% rate cut in December is about 85%, with Polymarket predicting it to be 83%. The next Federal Open Market Committee (FOMC) meeting is scheduled for December 9-10.

Under the combined influence of favorable conditions in the stock market and macroeconomic environment, investor confidence in Bitcoin and mainstream Crypto Assets has significantly increased, and the market is expected to continue its rebound trend. (DL News)