Bitcoin Price Forecast: BTC-USD Targets $105K After $92K Surge as AI Mining Boom Fuels Momentum
BTC-USD rebounds 3% from weekend lows, traders eye $105K breakout if Fed delivers rate cut | That's TradingNEWS
Bitcoin Price Today: BTC-USD Holds Above $92,000 As Fed Rate Cut Bets And Mining Pressure Collide
Btc-Usd Stabilizes After Volatile Weekend As Liquidity And Leverage Reset
Bitcoin (BTC-USD) traded around $92,018, gaining more than 3% in the past 24 hours after briefly dipping below $88,000 over the weekend. The rebound came as a sharp deleveraging event flushed roughly $60 billion from the overall crypto market capitalization and forced the liquidation of nearly $450 million in long positions. Spot trading volume jumped 62% to $56 billion, confirming strong dip buying. Open interest has now stabilized near $28.5 billion, showing that speculative excess has been cleared from the system.
Institutional demand reappeared between $88,000 and $90,000, forming a technical base that capped downside pressure. Despite the recovery, BTC-USD remains about 27% below its $126,000 record high from October, and the resistance zone between $94,000–$96,000 continues to act as the key battleground for a bullish reversal.
Macro Tailwinds And The Fed’s Role In Renewed Momentum
Traders are positioning for the Federal Reserve’s final meeting of 2025, where there is now an 87% probability of a 25 basis point interest rate cut, according to the CME FedWatch tool. A rate reduction would likely weaken the dollar and make risk assets like Bitcoin more attractive. Beyond rate expectations, the Fed has already injected about $13.5 billion in liquidity by slowing quantitative tightening, effectively easing financial conditions. Historically, BTC-USD’s bull runs have tracked expansions in global M2 money supply, and the renewed liquidity trend could mark the start of a sustained upward cycle.
Even with sentiment indicators like the Crypto Fear & Greed Index stuck in “Extreme Fear,” similar conditions have historically marked major bottoms as liquidity expands and leveraged positions reset.
Technical Structure Points To Key Levels Between $82K And $96K
On the daily chart, Bitcoin remains confined within a descending channel that has defined its trading pattern since October. The zone between $94,000–$96,000 represents major supply where sellers continue to cap rallies, while the $82,000–$79,000 area serves as crucial demand support from earlier rebounds.
A daily close above $94,000 would signal a potential breakout toward $105,000–$108,000, while losing $88,000 would expose BTC-USD to renewed selling down to $82,000. For now, Bitcoin remains in balance—consolidating as traders wait for a trigger to break out of this symmetrical compression pattern.
Institutional Sentiment Shifts As U.S. Capital Outflows Ease
The Coinbase Premium Index—a leading gauge of U.S. investor activity—has stabilized after weeks of deep negative readings. The premium’s recovery above neutral reflects easing sell pressure from American institutions. However, enthusiasm remains muted compared to early December, when buying intensity was stronger. Institutional desks appear cautious ahead of the Fed decision, but history shows that BTC-USD often outperforms equities during the two weeks following confirmed rate cuts. A sustained positive premium could serve as the confirmation signal for the next bullish leg above $94,000.
Mining Margins Squeezed As Efficiency Costs Rise And Ai Integration Expands
Bitcoin’s mining sector is under increasing financial strain. Global hashrate recently hit a record 1.16 EH/s, while mining difficulty climbed to 156 T, the highest on record. Profitability has fallen sharply, with hashprice dropping from $55 per PH/s per day in Q3 to $34.21 in November.
Major public miners like Marathon Digital Holdings (NASDAQ:MARA), Riot Platforms (NASDAQ:RIOT), and CleanSpark (NASDAQ:CLSK) are operating close to breakeven. MARA reports production costs between $26,000–$28,000 per BTC with total costs around $39,000, leaving narrow profit margins at current prices. Riot Platforms generated $180.2 million in Q3 revenue and $104.5 million in net profit but sold its entire monthly production of 463 BTC to fund expansion into AI-powered data centers.
The upcoming 2028 halving, which will reduce block rewards from 3.125 BTC to 1.5625 BTC, adds further pressure. Even the most efficient operators face rising electricity costs around $0.05–$0.07 per kWh, eroding profitability across older mining fleets.
Ai Becomes The New Frontier For Bitcoin Miners
Large-scale miners are accelerating diversification into AI computing to offset declining mining margins. Analysts project that by 2027, up to 20% of global Bitcoin mining capacity could be redirected toward AI-related workloads. The economics are clear: AI computation yields 2–5 times more revenue per kWh than traditional mining.
The transition is already visible. CoreWeave acquired Core Scientific for $9 billion, Google raised its stake in TeraWulf to 14%, and Riot Platforms converted 126 MW at its Corsicana, Texas facility into a hybrid AI and Bitcoin data center. Similarly, Bitmain, Bitdeer, and Canaan are repurposing unsold ASIC inventories to power their own mining farms and AI clusters. This evolution is creating a dual-purpose infrastructure that can seamlessly switch between Bitcoin validation and AI computation depending on market conditions.
Network Revenue Compression And The Search For New Income Streams
Transaction fees now account for only 0.7% of total miner revenue—well below the historical 5–15% range—raising long-term concerns about network security and sustainability. Innovations like Bitcoin Hyper (HYPER), a zero-knowledge rollup built on Bitcoin’s architecture, aim to introduce smart contract functionality and scalable transaction processing. The HYPER presale has raised $29.1 million, showing strong investor appetite for second-layer expansion solutions. These projects, if successful, could restore miner incentives and reduce centralization risks that arise when only a few industrial players can remain profitable.
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Market Psychology, Volatility, And Next Targets For BTC-USD
Sentiment within the crypto community remains polarized. Prominent personality YoungHoon Kim—who claims the world’s highest IQ—reiterated his forecast that BTC-USD could hit $220,000 within 45 days, calling current prices a “temporary discount.” While speculative predictions like this attract attention, professional traders maintain a disciplined focus on the $96,000–$100,000 supply barrier, which is packed with sellers looking to exit near breakeven.
If Bitcoin decisively reclaims the $94,000 threshold, momentum could quickly shift toward $105,000–$108,000. On the downside, any sustained move below $88,000 risks reopening the path toward the critical $82,000–$79,000 demand zone. The consolidation between these levels represents equilibrium—buyers defending the lower band, sellers controlling the upper edge.
Outlook For The Week Ahead
At current levels around $92,000, Bitcoin is technically stable but strategically positioned for volatility once the Fed’s decision is announced. Liquidity inflows, reduced leverage, and strong structural demand suggest an improving base for long-term recovery. The short-term trend remains neutral with a bullish bias as long as BTC-USD holds above $88,000.
Verdict: BTC-USD — BUY if price confirms a daily close above $94,000, with upside potential toward $105,000–$108,000. Maintain a defensive stance between $88,000–$82,000 as critical support for medium-term accumulation.