Bitcoin surged nearly 3% within an hour on Tuesday evening, climbing from around $90,000 to over $93,500. The move surprised many traders, especially after several days of sideways trading and low momentum.
Ethereum and Solana reacted even more strongly, jumping over 5% in the same time window. XRP and BNB followed with 3% gains. The total crypto market cap is now up by 3.5% on the day, hovering just below $3.18 trillion.
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Traders Prepare For a FED Decision
The timing of the rally points to investor positioning ahead of Wednesday’s Federal Reserve decision. With markets heavily expecting another interest rate cut, risk assets like crypto often benefit. Lower rates make fixed-income investments less attractive and can drive capital toward Bitcoin and other digital assets.
Derivatives activity also played a role. Large liquidations of short positions forced bearish traders to exit quickly, which likely helped fuel the sharp price movements seen across the board.
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Labor Market Data Boosts Sentiment
Another reason behind the jump is the new U.S. labor data, which showed job openings rising slightly in October, while layoffs also increased. The update surprised economists who had expected a more sluggish report. Stocks reacted quickly, with the Dow and S&P 500 moving higher during the day.
Despite signs of a weakening labor market, investors seem to interpret the data as supportive of further easing from the Federal Reserve. As expectations for a December rate cut remain high, risk assets including crypto may be reacting to the increased likelihood of looser monetary conditions.
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Outlook Hinges on Fed Decision
With the Federal Reserve set to announce its final rate decision of the year on Wednesday, traders across all markets are watching closely. A confirmed rate cut could strengthen crypto’s momentum into the weekend.
The combination of softer labor market data, bullish technical signals, and macro expectations appears to have brought buyers back in – and today, at least, that was enough to push Bitcoin sharply higher.
