Bitcoin and the broader crypto market extended their weekend rebound on Monday, supported by easing macro pressures and rising expectations of a December Federal Reserve rate cut. Traders increased their bets after San Francisco Fed President Mary Daly signaled support for lowering rates, citing weakening labor-market conditions.

Bitcoin (BTC) briefly pushed above $89,000 during U.S. trading hours, marking a gain of more than 10% from Friday’s dip just above $80,000. It was recently trading near $88,800, up 1.4% over the past 24 hours. Ether (ETH) advanced 4.4% to just under $3,000, matching the performance of the CoinDesk 20 Index.

Crypto-exposed equities also rallied, with the strongest moves concentrated among miners tied to artificial intelligence (AI) and high-performance data-center infrastructure. The sector was buoyed by Amazon’s announcement of a $50 billion investment into U.S. AI and supercomputing systems. CleanSpark (CLSK) and Cipher Mining (CIFR) jumped 18%, while Hut 8 (HUT), Bitfarms (BITF), IREN, HIVE, and TeraWulf (WULF) all posted double-digit gains.

Digital asset treasury companies—among the most beaten-down names during the recent correction—also saw strong relief. BitMine (BMNR) rose nearly 20%, Solana Company (HSDT) gained over 16%, and AVAX One (AVX) climbed 10.4%. Bitcoin treasury firms Strive (ASST) and MetaPlanet (MTPLF) advanced 10.7% and 8.7%, respectively. The sector’s largest corporate bitcoin holder, MicroStrategy (MSTR), bounced 5%.

The risk-on move aligned with a broader rebound in U.S. equities. The Nasdaq gained 2.6%, while the S&P 500 rose 1.5% following last week’s heavy sell-off.

Rate-cut expectations helped fuel the shift in sentiment. A Wall Street Journal report noted that Mary Daly now supports a December cut, aligning her with Fed Chair Jerome Powell. Markets moved quickly: traders now assign an 85% probability of a 25-basis-point cut at the Dec. 10 meeting, sharply higher than 42% a week earlier, according to the CME FedWatch Tool.

Relief Rally Meets $100K Resistance

Despite the rebound, analysts warn that bitcoin still faces a major psychological and technical hurdle near $100,000.

“Digital assets have been caught in the macro unwind, but the market is now at a point where consolidation looks plausible,” said Jasper De Maere, OTC trader at Wintermute. He noted that crypto positioning has reset meaningfully: leverage has come down, funding rates have shifted neutral to negative, and spot volumes look healthier.

With derivatives risk flushed out, De Maere expects the recovery to continue—but in a measured, gradual fashion, rather than an aggressive squeeze to new highs.