Yeliz Akmaca 
The crypto market is showing signs of recovery ahead of key US economic data this week. Bitcoin bounced back above $87,000, rising nearly 2% in the past 24 hours, while the broader crypto market gained approximately 1.5%.
Bitcoin’s rebound from a recent low of $80,000 to above $85,000 over the weekend reflects renewed investor confidence. Trading volumes jumped nearly 50%, signaling increased market activity. Analysts attribute part of this surge to returning institutional participation. US spot ETFs saw inflows of about $238 million, helping to restore market confidence. Weekend trading typically drops by up to 25%, which can exaggerate price movements.
Investor sentiment also benefited from expectations of a Federal Reserve rate cut. Markets are currently pricing in a 67% probability of a December reduction, boosting optimism. Additionally, BlackRock’s proposed staked Ethereum ETF, with an estimated 3–4% yield, further fueled market confidence.
US Economic Reports Could Drive Volatility
Investors are closely watching three key US reports this week: the Producer Price Index (PPI), weekly jobless claims, and the Fed’s preferred inflation gauge, the PCE.
The PPI, scheduled for release on Tuesday, November 25, will reveal wholesale price trends. A higher-than-expected PPI could reduce rate-cut expectations, while softer data might support policy easing early next year.
Weekly jobless claims, due on Wednesday, November 26, could also influence market sentiment. Higher-than-expected unemployment claims typically reinforce the case for sooner rate cuts. Last week’s US job report exceeded projections, driving Bitcoin gains.
The PCE inflation report will likely be the key short-term market driver. By reflecting real consumer behavior, any upside surprise could trigger immediate volatility across Bitcoin and major altcoins.
Analysts Split on Market Sustainability
Analyst Oleg Kalmanovich notes that US retail sales and PCE data will determine if the recovery continues. Weak data could strengthen the case for a December rate cut, while stronger numbers may apply pressure on the market into early 2026.
CryptoQuant highlights that short-term holders have largely capitulated, suggesting a potential near-term bounce. However, losing the $80,000 support level could trigger a prolonged correction.
According to QCP Asia, BTC is showing early recovery signs after a brutal 30% drop. Dovish Fed comments have pushed December rate-cut expectations to 75%. Derivatives positioning indicates traders are still betting on upside, with year-end call open interest outweighing puts. Negative funding rates also suggest long leverage has been flushed, reducing downside risk.
This week is pivotal for the crypto market. PPI, jobless claims, and PCE data, combined with positive ETF flows, could determine whether Bitcoin’s rebound above $87K is sustainable.
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