Bitcoin's Big Bounce: What's Driving the Crypto Comeback?

The crypto world is buzzing again as Bitcoin (BTC) has finally broken through the $90, 000 barrier after a tough stretch. This rebound has brought some relief to Bitcoin ETF holders, who were feeling the pinch when prices dipped below the key $89, 600 mark. Cathie Wood, the big boss at ARK Invest, is still holding onto her bold prediction that Bitcoin could hit a whopping $1. 5 million in a bull market. She points to the return of liquidity after the U. S. government shutdown as a major factor. Meanwhile, the crypto market is riding a wave of optimism, with expectations of interest rate cuts heating up. The chances of a rate cut in December have shot up to 85%, according to the CME Group’s FedWatch tool. But let’s not get too carried away—Bitcoin is still in the red for November, down about 17%, even though this month usually sees an average gain of 41%. Cathie Wood isn’t worried, though. She says the $1. 5 million target is still on track, even with stablecoins stealing some of Bitcoin’s thunder. The crypto market isn’t the only one feeling the love—equities are also getting a boost as liquidity flows back in. ARK Invest expects another $300 billion to hit the markets soon, which could turn things around. Plus, the Federal Reserve is set to end its quantitative tightening program on December 1st, which could give the market another lift. Cathie Wood also thinks the "liquidity squeeze" that’s been holding back crypto and AI markets is about to ease. She’s sticking with ARK Invest’s 2030 price target for Bitcoin, which ranges from $300, 000 to $1. 5 million, depending on how things play out.