Bitcoin Rebounds Past $92K on Fed Cut Hopes as SHIB Burn Rate Plummets

Bitcoin surged above $92,000 during the Asia market open on Wednesday, reclaiming key levels as global equities steadied after a bond-driven selloff earlier in the week. The world's largest cryptocurrency traded at $92,851, up 6.6%, while Ether rose to $3,040 and XRP to $2.18, with the total crypto market cap reaching $3.22 trillion.

Akshat Siddant, lead quant analyst at Mudrex, noted a strong V-shaped rebound for Bitcoin, citing improved sentiment after the Federal Reserve ended quantitative tightening and injected $13.5 billion in liquidity. He highlighted Bitcoin exchange reserves falling to multiyear lows of 2.19 million BTC, bolstering buying pressure. Resistance is seen near $96,000, with support at $87,800.

The recovery follows a turbulent start to the week, when expectations of a Bank of Japan rate hike triggered a global bond selloff, spilling into cryptocurrencies. Now, focus shifts to the Fed, with traders pricing an 89.2% chance of a 25-basis-point rate cut next week, according to CME's FedWatch Tool. The upcoming Personal Consumption Expenditures Index on Friday could cement expectations.

Concurrently, Shiba Inu (SHIB) faced extreme volatility in its token burn rate, with Shibburn data showing a -100.00% decline over 24 hours, meaning no tokens were burned. Weekly burns dropped 81.73% to 58,389,212 SHIB from 320,186,507 the prior week, raising questions about supply reduction sustainability.

Despite this, Shibarium, Shiba Inu's Layer 2 solution, saw daily transactions jump to 3.24 million, potentially supporting more consistent burns in the future. Samer Hasn, market analyst at XS.com, cautioned that Bitcoin's stabilization masks fragility, with whales offloading holdings and leverage resets incomplete.