Crypto Market Rebounds as US Policy Clarity Lifts Sentiment

Bitcoin gained 5.0% during the period to $106,389, Ethereum rose 8.4% to $3,592, and XRP climbed more than 12% to $2.49, extending the two-week recovery driven by easing liquidity fears and improving risk sentiment.

The Crypto Fear and Greed Index rose five points from 9 Nov to 29, still in “fear” territory but showing early stabilisation. Gains followed renewed optimism over US fiscal stability and tentative signs of moderating inflation pressures.

Market confidence improved after the US Senate passed a bipartisan bill extending federal funding through January 2026, reducing the risk of a shutdown. The move eased concerns about data delays and potential credit-rating volatility that had clouded sentiment in recent weeks.

Former President Donald Trump’s proposal for “tariff rebate” payments of up to $2,000 per household added further momentum, with investors interpreting it as a potential fiscal boost that could increase consumer liquidity and indirectly support digital-asset inflows.

Onchain data indicated easing selling pressure. Bitcoin netflows fell to six-day lows on 9 Nov, while outflows reached roughly 4.6bn between midnight Friday and 9 a.m. UTC, according to Coinglass. Funding rates turned slightly positive, reflecting cautious long positioning rather than speculative excess.

ETF flows remained mixed. Spot Bitcoin funds recorded weekly outflows of about $1.4bn, according to Farside Investors data, but smaller Ethereum and Solana products saw modest inflows, suggesting a rotation rather than a withdrawal of institutional capital.

Focus now shifts to US inflation data due Tuesday. Economists expect headline CPI to rise 0.2% month-on-month and core CPI 0.3%. Softer readings could reinforce expectations of a March rate cut by the Federal Reserve and support further gains across digital assets.

Bitcoin remains range-bound near $105,000 at the time of publication, with resistance around $108,000. Ethereum is consolidating near $3,600, eyeing $3,750 as the next hurdle. The overall market structure remains constructive while total capitalisation holds above $3.6tn.