Why Fed Rate-Cut Signals and a Rebound in U.S. Stocks Could Ignite Bitcoin’s New Bull Market

Global macro environment shifts — Why are interest rate cut expectations rising

By the end of 2025, U.S. economic data shows signs of slowing down, and the market is refocusing on the possibility of the Fed cutting interest rates at the December meeting. Several officials have expressed that the likelihood of a rate cut is considerable, and the market generally believes that a rate cut will improve liquidity conditions, thereby boosting the prices of risk assets.

US stocks recovery - The pivot point of asset resonance

The US stock market has rebounded strongly, driven by technology stocks and large growth stocks, boosting overall risk appetite. Funds are flowing back into high-volatility assets, including Bitcoin, significantly enhancing investor confidence. Recently, Bitcoin has quickly risen from its low to the range of 85,000–88,000 dollars, demonstrating the market’s sensitive reaction to changes in macro policies and the recovery of the stock market.

The recent trend of Bitcoin and institutional response

The rapid rebound in Bitcoin prices not only reflects an improvement in market liquidity but also indicates that some institutional investors are beginning to re-enter the crypto market, providing support for prices. The warming investor sentiment and technical adjustments have jointly driven the rebound trend.

Are the conditions for a bull run in place — Analysis of short-term and long-term factors

Does Bitcoin have the conditions to start a new bull run?

• Loose monetary policy environment: interest rate cuts will release liquidity, and funds are expected to flow into high-risk assets.
• Risk appetite returns: The stock market rise boosts overall market sentiment.
• Technical correction: The rapid rebound after the price hit the bottom improves market psychological expectations.
• Institutional Participation: The re-entry of institutional funds provides stability.

Insights and Operational Recommendations for Investors

Despite market conditions seeming favorable, Bitcoin still carries volatility risks. Policy uncertainty, inherent price volatility, and changes in global capital flows can all affect its performance. Investors should act rationally, diversify risks, and closely monitor policy trends and market dynamics to cope with potential price fluctuations.