Crypto investors finally have some green on their screens again. After a record-breaking downturn last month, major cryptocurrencies are rebounding as markets increasingly price in a new phase of looser monetary policy from the U.S. Federal Reserve.
A Forbes Daily briefing notes that the recovery follows a series of interest-rate cuts and growing expectations that the Fed will keep easing in 2026 to support a cooling labour market. Lower rates typically weaken the dollar and make risk assets – including Bitcoin and altcoins – more attractive relative to cash.
From fear to cautious optimism
Last month’s slide wiped out a large chunk of 2025’s gains, pushing leveraged traders out of the market and driving funding rates sharply lower. Sentiment indicators swung into “extreme fear.” Now, with the Fed confirming another 0.25-point cut and leaving the door open to at least one more next year, buyers are tentatively returning.
Bitcoin has led the bounce, but mid-cap tokens and key DeFi projects are also seeing renewed inflows. On-chain data suggest long-term holders were net buyers during the dip, while short-term traders bore the brunt of forced liquidations.
Macro tailwind, old risks
Cheaper money is not a cure-all. Crypto still faces pressure from ongoing regulatory actions in the U.S. and Europe, as well as lingering questions about the sustainability of some business models exposed during previous cycles. At the same time, institutional interest has deepened, with more funds treating digital assets as a high-beta macro trade rather than an isolated niche.
For investors in Lebanon and the wider region, where local banking systems remain fragile and access to global markets is often constrained, crypto continues to sit in a grey zone: attractive as an alternative, risky as a store of value.
What to watch next
The next few weeks will show whether this is the start of a new leg higher or just a relief rally after heavy selling. Key markers include how Bitcoin reacts to further Fed communication, whether volumes return to spot and derivatives exchanges, and how regulators respond to renewed speculative activity.
One constant remains: crypto prices can move faster than most retail investors can react. Anyone considering exposure should treat this rebound as a reason to review risk management – not an invitation to assume that the hard part of the cycle is over.
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