Bitcoin price today: rate cut cheer spurs rebound to $87k, but caution persists

Investing.com-- Bitcoin climbed on Tuesday, rebounding further from recent losses as increasing conviction in a December interest rate cut by the U.S. Federal Reserve helped support risk assets. 

But gains in Bitcoin were seen running out of steam, as investors still remained largely cautious towards crypto after major price losses in October and early-November. 

Altcoins clocked stronger gains on Tuesday, but were also nursing steep losses over the past month. 

Bitcoin rose 1.2% to $87,191 by 09:32 ET (14:32 GMT). 

Bitcoin aided by Dec rate cut bets 

Bitcoin’s recovery from a seven-month low was spurred chiefly by a resurgence in bets on a December interest rate cut by the Fed. This came as at least two Fed officials spoke in support of cutting rates next month. 

Markets are pricing in a 77.2% chance the Fed will cut rates by 25 basis points during its December 9-10 meeting, up sharply from a 41.8% chance seen last week, CME Fedwatch showed. 

The reversal in market expectations sparked gains across risk-driven markets, with crypto also being caught up in the recovery rally. 

But overall gains in crypto lagged the recovery seen in stocks, especially in the technology sector. While crypto tends to move in tandem with tech stocks, it has steadily decoupled from the sector since at least early-October. 

Bitcoin and broader crypto prices have been on an extended downturn since October, hurt by a slew of factors. Retail traders were seen growing wary of the sector after a flash crash in early-October, while institutional flows into crypto also largely dried up, with U.S.-listed Bitcoin exchange traded funds logging five straight weeks of capital outflows. 

Focus is now on a host of upcoming U.S. economic readings for more cues going into the Fed’s December meeting. Producer inflation and retail sales prints for September are due later on Tuesday, while PCE price index data, the Fed’s preferred inflation gauge, is due on Thursday. 

Sweden’s Klarna to launch dollar-backed stablecoin in 2026

Klarna said Tuesday it plans to roll out a U.S. dollar-backed stablecoin, expanding further into digital assets as regulatory scrutiny increases. The token, dubbed KlarnaUSD, is in testing and slated to go live on mainnet in 2026. The company said it will be fully backed by the U.S. dollar.

Stablecoins, whose value is linked to fiat currencies, have grown in popularity as traders look for a steadier vehicle to shift money between more volatile crypto tokens.

Klarna plans to market KlarnaUSD for everyday spending and cross-border transfers, arguing it can offer faster and cheaper transactions than traditional banking channels.

The token will operate on Tempo, a payments-oriented blockchain built by Stripe and Paradigm.

Crypto price today: altcoins clock stronger recovery 

Broader crypto prices fared slightly better than Bitcoin on Tuesday, as the battered sector drew in bargain buying. 

World no.2 crypto Ether jumped 4% to $2,914.24, while XRP jumped 6.7% to $2.2118.

Solana, Cardano, and BNB rose between 1.2% and 5%. 

Among meme tokens, Dogecoin rose nearly 2%, while $TRUMP fell 0.6%.

(Ambar Warrick contributed to this report.)