Bitcoin surged back above $94,000 on Tuesday, extending a sharp recovery as traders positioned ahead of an expected Federal Reserve interest rate cut.

The largest digital asset by market value climbed back above $94,000 by midday Tuesday as traders positioned for tomorrow’s Federal Reserve meeting, with markets pricing in a 25 basis point rate cut.

The CME FedWatch Tool shows roughly a 90% probability of a cut, while Polymarket traders are pricing the odds closer to 95%.

The move lifted the broader crypto market, which is up about 4% over the past 24 hours. Ether rose above $3,350, gaining roughly 7%, while Solana traded near $144 and XRP around $2.16, with most major tokens posting gains.

While the rate cut itself is largely expected, traders are focused on forward guidance from Federal Reserve Chair Jerome Powell. Markets are watching closely for signals on whether the Fed may continue easing into 2026 and adopt a more dovish tone as 2025 draws to a close.