Bitcoin gained 2.4% as CFTC approved spot trading on regulated exchanges and withdrew restrictive delivery rules. Fed cut rates 25bp and began $40B monthly purchases.
Bitcoin's 2-3% rally over the past 24 hours reflects a convergence of regulatory clarity and renewed macro support, as the CFTC opened the door to regulated spot crypto trading while the Federal Reserve simultaneously cut rates and launched a modest balance sheet expansion that has reanimated the liquidity narrative for risk assets.
Bitcoin News: CFTC Regulatory Shift And Fed Liquidity Pivot Lift Bitcoin From Support
Regulatory Upgrade Removes Friction For Institutional Participation
The clearest Bitcoin-specific catalyst emerged from a sweeping policy overhaul at the U.S. Commodity Futures Trading Commission. The agency formally withdrew its 2020 "actual delivery" guidance for Bitcoin and other virtual currencies, which had forced leveraged crypto buyers to take full possession within 28 days. The withdrawal removes "outdated and overly complex" rules that penalized the industry and deterred exchanges from operating in the U.S., moving Bitcoin into a more standard commodity framework alongside assets like gold and oil.
In the same policy bundle, the CFTC for the first time green-lit spot crypto trading directly on CFTC-registered futures exchanges and launched a pilot allowing Bitcoin, Ether and USDC to be used as collateral in derivatives markets, with detailed reporting requirements. Exchanges such as Bitnomial will offer unified spot, perpetual, futures and options trading under full CFTC supervision, with leveraged retail crypto trades being pushed onto regulated venues with established market protections. These announcements hit wires on December 11 in the U.S. afternoon and evening, around the same time BTC reversed from an intraday low near $89,500 back above $92,000-$93,000, exactly the part of the 24-hour window where price went from testing sub-$90k support back into the low-$90k range.
A credible, U.S.-regulated path for trading spot BTC and posting it as collateral reduces regulatory tail risk and makes it easier for institutions to participate, a straightforward bullish catalyst relative to the policy uncertainty that has weighed on U.S. crypto markets through much of 2024-2025.
Fed Rate Cut And Balance Sheet Expansion Reinforce Risk-On Sentiment
The broader macro backdrop turned more supportive for Bitcoin and other risk assets over the same period. The Federal Reserve cut rates by 25 basis points at its latest FOMC meeting and signaled ongoing concern about a weakening jobs market. Coverage of Bitcoin's 4.3% trough-to-peak intraday move on December 11 attributes the afternoon rebound to traders "looking at the bright side" of this macro decision, with Bitcoin and high-growth equities rallying together after an early sell-off.
Separate analysis highlights that the Fed is ending quantitative tightening and beginning roughly $40 billion per month in "reserve management purchases" of short-term Treasuries. While framed as a technical move, it still expands the balance sheet and reduces net T-bill supply for private investors. Commentators argue this can nudge portfolios toward risk assets such as tech stocks and crypto, calling it the first material liquidity injection since 2021, when the last major BTC bull run took off. Market commentators like Ran Neuner point out that, even while Bitcoin has been trading sideways near $90,000, other indicators (silver at all-time highs, small-cap equities breaking out, ETH/BTC turning) show the market in "full risk-on mode" and frame BTC as lagging that shift, with a likely catch-up trade as sellers exhaust.
Over the last 24 hours, total crypto market cap rose from roughly $3.07 trillion to $3.14 trillion, a gain of about 2.2%, closely in line with BTC's roughly 2.4% move. BTC dominance is broadly flat near 58.7%, so this is not an alt-led squeeze but a market-wide risk-on response in which Bitcoin is participating as the benchmark asset. The Fed is now simultaneously cutting rates and gently expanding its balance sheet. Even though officials insist this is mainly technical, markets are treating it as a modest liquidity pivot. For Bitcoin, which tends to trade like a high-beta macro risk asset plus an inflation hedge, that is a supportive backdrop, especially when combined with the CFTC's regulatory warming.
Market Structure And Accumulation Patterns Allowed The Bounce To Stick
Policy shifts alone do not move price unless market structure allows, and several data points suggest the backdrop over this 24-hour window was primed for a relief move rather than another breakdown. BTC's path saw it trade around $90,275 roughly a day ago, dip toward the high-$89k region, then recover to about $92,446, a move of roughly 2.40% over the window after intraday volatility of more than 4% peak-to-trough. Technical coverage notes strong buying interest near $89,500 and defines $90,000-$91,200 as short-term support, with upside resistance in the $93,000-$94,000 region. The way price respected that support zone and then bounced aligns in time with the CFTC and Fed coverage hitting the tape.
Recent on-chain analysis indicates that so-called accumulator wallets bought about 75,000 BTC between December 1 and 10, including 40,000 BTC in a single day. This accumulation has occurred even as short-term holders sit on 10-30% unrealized losses and as whales in the 10,000-100,000 BTC cohort have sold or redistributed roughly 36,500 BTC in early December. That mix means supply is gradually moving toward stronger hands, and it takes less fresh demand to move price once marginal sellers exhaust. Another piece notes BTC stabilizing after a drop to around $84,000 and a move back toward the low-$90k region, alongside a sharp decline in exchange deposit volume from approximately 88,000 BTC to roughly 21,000 BTC, interpreted as reduced near-term selling pressure on centralized exchanges.
Global crypto derivatives open interest is up around 4-5% over 24 hours, suggesting more leverage is coming back into the system, but not yet at extreme levels. Funding rates are modestly positive, so this is more consistent with cautious long positioning than a crowded euphoric long. Social sentiment for Bitcoin over the last 24 hours is almost exactly neutral at about 5.0 on a 0-10 scale, with slightly more constructive than fearful messages. Some of the most shared bullish posts highlight the CFTC's approval of spot Bitcoin and crypto trading on CFTC-registered exchanges, while bearish posts focus more on other assets or legacy concerns. The CMC Fear & Greed index for the overall crypto market is still in "Fear" territory around 29, with the Altcoin Season Index firmly in "Bitcoin Season," indicating that the move is happening in an environment that is far from frothy.
ETF assets under management in spot Bitcoin products ticked up from about $124.24 billion to $126.16 billion, indicating net positive flows into regulated Bitcoin vehicles even during a still-fragile market. The flows and positioning picture suggests this 24-hour rise is what you would expect when sellers near key support levels blink in the face of unexpectedly positive policy headlines, long-term accumulators continue buying on weakness, and there is just enough leverage and ETF demand returning to amplify a rebound, but not enough exuberance to make it unstable immediately.
Policy-Driven Relief In A Still-Cautious Market
The positive move in Bitcoin over the last 24 hours lines up with a clear regulatory upgrade in the U.S. as the CFTC withdraws restrictive guidance, authorizes spot crypto trading on CFTC-registered exchanges, and allows BTC to be used as collateral on regulated derivatives platforms, alongside a macro shift where the Fed is both cutting rates and expanding its balance sheet via Treasury purchases. Market structure that features ongoing long-term accumulation, reduced exchange selling, modest ETF inflows, and neutral but slightly improving sentiment allowed these policy tailwinds to lift BTC from support rather than trigger another leg lower.
