Bitcoin Roars Back Above $91,000 as Risk Appetite Returns and Short Squeeze Ignites Crypto Rally

Bitcoin, the world’s largest cryptocurrency, jumped back above the $91,000 mark for the first time in nearly a week, clawing back losses after a month-long slump. A broad rebound in risk assets and calmer market volatility gave traders the breathing room they needed to push prices higher.

Ethereum followed suit with a 3.75% surge in the past 24 hours, reclaiming the $3,000 level. Major altcoins — including XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid — also posted gains of more than 4%, signaling a synchronized market recovery.

On Wednesday, Bitcoin climbed as much as 4% to $90,460, trimming its drop from the early-October all-time high of just above $126,000 to around 28%. According to CoinSwitch Markets, BTC spent most of the day trading quietly between $86,500 and $87,500 before a sudden breakout pushed it toward $91,000. The move was fueled largely by a short squeeze and helped the token clock a 4.4% gain in 24 hours. Notably, BTC ETFs saw inflows in two of the last four sessions — a sign that institutional interest may be returning.

What sparked the rebound?

A wave of renewed buying interest and strengthening market sentiment helped Bitcoin stabilize after weeks of declines. Edul Patel, CEO of Mudrex, noted that an estimated 1.8 million BTC were withdrawn from exchanges overnight — a massive shift that fueled speculation of institutional accumulation.

Crypto prices also moved in tandem with equities as optimism grew that the Federal Reserve could resume cutting interest rates soon. CoinSwitch highlighted that lower-than-expected U.S. jobless claims and a supportive inflation print from the PPI release have built a “good market structure” for a possible Fed policy pivot.

WazirX, however, cautioned that looming concerns over a weakening yen could spark capital outflows from risk assets if Japan tightens financial conditions. While liquidity is improving, analysts expect leverage to remain muted until sentiment turns decisively positive.

Market outlook: cautious but primed for catalysts

Pi42 Co-Founder & CEO Avinash Shekhar said traders are showing reduced conviction as BTC remains trapped within a narrow trading band. Buyers lack the momentum for a decisive breakout, and sellers haven’t regained enough control to push prices into deeper correction territory. As a result, the market sits in a holding pattern, waiting for fresh catalysts — macro data, liquidity shifts, or derivatives positioning — to define the next major trend.

Bitcoin: Key levels to watch

Mudrex’s Edul Patel believes that if retail demand builds further, Bitcoin could test and potentially surpass $95,000. A breakout above this threshold would strengthen the bullish structure and reopen the path toward new record highs.

Ethereum: Eyeing a breakout above $3,130

Riya Sehgal, Research Analyst at Delta Exchange, noted that Ethereum is stabilizing near $3,000 on the back of $96 million in ETF inflows and rising institutional involvement. If ETH breaks above $3,130, it could target $3,400 next, while support remains firm at $2,970.

With volatility easing and risk appetite returning, traders are once again watching Bitcoin and Ethereum closely — and the next big move may come sooner than expected.