Bitcoin Breaks Above US$90,000, but Analysts Warn the Recovery Remains Fragile

Bitcoin (BTC) has once again climbed and surpassed the psychological level of US$90,000 after previously being dragged down by a sharp correction. However, analysts believe the market remains cautious amid macroeconomic uncertainty and the direction of global monetary policy.
 

Bitcoin Surges More Than 6% as Risk Assets Strengthen

Bitcoin recorded a gain of more than 6% during the morning session, lifting the world’s largest cryptocurrency back above US$90,000. The rally also acted as a catalyst for gains in the stock market particularly in the technology sector as investor appetite for risk assets improved. Market participants view the movement as a potential technical rebound, especially after the crypto market experienced significant liquidity contraction over the past few weeks. This momentum is also seen as a buy-the-dip response following easing selling pressure.
 

Support from U.S. Monetary Policy Expectations

Bitcoin’s price recovery is believed to be influenced in part by expectations that the Federal Reserve (the Fed) will begin loosening its monetary policy. Anticipation of interest-rate cuts raises hopes that liquidity will once again flow into risk assets. The U.S. bond market has also shown signs of stabilization. Yields on the 10-year Treasury have started to decline, which analysts say may indicate easing inflation pressures and improving global liquidity conditions—factors that typically benefit assets such as Bitcoin.

Additionally, the latest U.S. labor-market data shows slowing growth, giving the Fed greater room to cut interest rates. Such policy prospects are often seen as positive catalysts for digital assets.
 

Cautious Sentiment Persists: Macro Risks Have Not Fully Subsided

Although Bitcoin has shown a solid recovery, several analysts warn that the current rally does not yet reflect strong fundamental support. Several risk factors continue to overshadow the market, including:
 

Liquidity and Trading Volume Remain Thin
The crypto market is still facing weak liquidity conditions. Low trading volume makes prices more vulnerable to sharp fluctuations, including the risk of a flash crash.
 

Upcoming U.S. Economic Data Could Shift Market Direction
 

Investors are now awaiting several key economic releases in the coming days, such as inflation figures, labor-market reports, and the Fed’s latest statements. These data points have the potential to trigger significant market volatility.

Bitcoin’s Technical Structure Is Still Weak

From a technical perspective, Bitcoin continues to face major resistance zones. Analysts identify the US$93,900–US$97,100 range as a critical level that must be broken to confirm a more stable medium-term recovery.