- Bitcoin trades close to $90K, up by 2.1%
- Ethereum reclaims $3K with a 2.7% rise
- Traders bet on 2026 Fed rate cuts despite extreme fear
After a rocky period, the crypto market recovery gained momentum over the weekend. Bitcoin surged near the $90,000 mark, trading at $89,510 with a 2.1% increase. Ethereum also showed strength, climbing 2.7% to cross the $3,000 level and settling at $3,016. These moves came despite market sentiment still being marked by fear.
Investors appear to be looking ahead, pricing in interest rate cuts by the Federal Reserve starting in 2026. This outlook has helped fuel a “risk-on” sentiment, where traders move capital into higher-risk assets like cryptocurrencies.
Extreme Fear Persists Despite Gains
Interestingly, the Fear and Greed Index (FGI) currently sits at 24, indicating Extreme Fear in the market. This shows that while prices are rising, many retail and institutional investors remain cautious. Market-wide liquidations totaled around $176 million, a signal that short positions were likely caught off-guard by the upward momentum.
Still, the total crypto market cap climbed to $3.10 trillion, a sign of broad-based recovery and renewed optimism in major coins like BTC and ETH.
What’s Driving the Momentum?
The expectation of Federal Reserve rate cuts in 2026 has given investors hope that liquidity will eventually return to the markets. Historically, lower interest rates have benefited speculative assets like cryptocurrencies.
This macro shift is encouraging some traders to re-enter positions in Bitcoin and Ethereum, even as others remain on the sidelines. With BTC flirting with $90K and ETH reclaiming the $3K level, the market could be setting the stage for another leg up—provided macro conditions continue to support risk assets.
