After a rather prolonged period of pressure, Bitcoin is finally showing signs of recovery, rising 2.59% in the past 24 hours and maintaining a positive seven-day trend of 7.41%. Although it has still recorded a 10% correction on a monthly basis, today’s performance is in line with broader market sentiment, as the overall crypto market capitalization also increased by 2.24%. This recovery is driven by three key factors: a breakthrough in institutional adoption in the Islamic world, expectations of a more accommodative U.S. monetary policy, and technical momentum after breaking through significant psychological levels.

Ruya Bank in the UAE has opened a new chapter in institutional adoption by partnering with Fuze to launch Shariah-compliant Bitcoin trading services. This progressive initiative integrates Bitcoin as a recognized Islamic asset into their digital banking app, establishing a direct bridge between traditional finance and the crypto ecosystem. This move not only targets investor groups that value ethical and religious compliance, but also strengthens the UAE’s position as a globally inclusive crypto hub while extending Bitcoin’s legitimacy into previously untapped financial sectors.

On the macroeconomic front, there’s good news regarding expectations for the Federal Reserve. The Polymarket prediction platform recorded a 94% probability of a 0.25% rate cut expected on December 10, driven by softer labor data and a trend of slowing inflation. More accommodative monetary policy typically acts as a catalyst for risk assets like Bitcoin, as lower interest rates reduce the appeal of fixed-income instruments such as bonds. This signal was immediately picked up by the derivatives market, with open interest in CME’s Bitcoin futures contracts surging 20% in a single day, indicating a spike in leveraged bets amid a sustained uptrend.

On the technical charts, Bitcoin has successfully broken through the key resistance zone of $89,500–$92,000 while also filling the CME price gap at $89,400. This breakout triggered $119 million in short positions being liquidated, followed by massive accumulation signals, including $3.9 billion worth of Bitcoin being transferred to institutional management from Tether. Technical indicators such as MACD have turned positive, and the RSI remains far from overbought territory, supporting further upside potential. However, lurking beneath this optimism is the risk of a leveraged rally, reflected in rising funding rates and the potential for profit-taking if Bitcoin fails to hold above $92,000.

Bitcoin’s current rally reflects a rare harmony between policy optimism, adoption progress, and technical strength. However, the path to sustainable recovery still faces rigorous tests: whether it can maintain above $92,000 after the Fed’s decision and confirmation of ETF inflows. Between hope and caution, the market awaits to see whether this momentum will become the foundation of a new revival or merely another selling opportunity before the next bout of volatility.