Bitcoin Price Forecast: BTC Likely to Rebound Back to $93k

Highlights:

• Bitcoin has dropped in the last 24 hours after a major DeFi breach 
• Panic selling saw between settle at a key demand zone
• Rally off this zone could trigger a rally back to $93k short term

After a rebound last week, Bitcoin has started the new week in the red. At the time of going to press, Bitcoin was trading at $86,621.26, down by 5.16% in the day. However, trading volumes have also shot up during the day. At press time, Bitcoin trading volumes were up 66.78% to $62.89 billion. 

The surge in trading volumes at a time when the price is going down points to panic selling. It could also point to the forced liquidation of overleveraged Bitcoin longs. Such indicators suggest panic, which could likely trigger further selloffs in the short to medium term. Several factors are driving Bitcoin’s adverse price action in the short term. 

Yearn Finance Breach Triggers Bitcoin And Other Cryptocurrencies’ Selloff

The first is growing fears around the Yearn Finance breach. Yearn Finance is an essential player in DeFi, and the news-making headlines are that hackers minted an excessive amount of yETH and flooded the market with it. This has shaken investor confidence in the liquidity protocol and the broader market as a whole. This is especially true because such DeFi hacks have become increasingly common in recent years.

Yearn Finance Hack Alert

At 21:11 UTC Nov 30, the yETH stableswap pool was exploited, resulting in ~$9M in losses.

$8M (impacted pool)
$0.9M (yETH-WETH Curve pool)
Yearn V2/V3 vaults & other products are NOT affected.

Analysis ongoing.https://t.co/97AtdtK2HG#Yearn #DeFi pic.twitter.com/Kgelf7ssvx

— firmanregar (@0xfirmanregar) December 1, 2025

It points to a shaky ecosystem, and could lead institutional investors to start shying away from the market, or those already in it to start exiting. The panic caused by the Yearn Finance issue is evident in the fact that Bitcoin dropped from over $92k to a low of $85k in a matter of hours. While Bitcoin has since found some stability around $86k, the high volumes at a time when the price is weak point to ongoing weakness. The result is that Bitcoin could be headed much lower in the short to medium term. 

Investors Rush Away From Bitcoin Ahead of Major Economic Data

Besides the Yearn Finance breach and its impact across the market, Bitcoin is also facing a major liquidity exit ahead of critical economic data from the US. While the Federal Reserve is increasingly expected to cut rates this month, the decision has not yet been confirmed. As such, investors may be exiting high-risk assets until the decision is made.

$BTC BEHAVIOUR AROUND #FOMC:

THE LAST 2 EVENTS WERE IDENTICAL. FRONT-RUNNING THE RATE CUT.

BOTTOM EXACTLY 10 DAYS OUT (TODAY)

RALLY 7-9% INTO THE MEETING
DUMP THE NEWS
WE ARE IN THE BUY ZONE.

EXPECTING THE LOCAL BOTTOM WITHIN 24 HOURS. pic.twitter.com/wPPWtCMfjj

— Bitpool 🇦🇺🐐 (@litneuron) December 1, 2025

This may also explain why Gold is gaining quite strongly at the moment. Investors want safety ahead of a significant rate decision. The uncertainty is made worse by the fact that President Trump has announced he already knows who he will choose as the next Federal Reserve Chairman. This has sparked market speculation, which is not a good thing for high-risk assets like Bitcoin and other cryptocurrencies. 

Bitcoin Could Rally If Trump Picks A Dovish Federal Reserve Chairman

However, there is still a strong chance for a Bitcoin rebound despite the intraday correction. Some of the issues causing the uncertainty could play into Bitcoin’s favour in the medium term. For instance, the issue of who President Trump will choose as the next Federal Reserve Chairman has markets speculating that it will be Kevin Hassett, a former White House economic advisor.

I don’t think people realize how bullish Kevin Hassett as the next Fed Chair would be for the market.

Hassett has spent his entire career arguing that the economy accelerates when capital stays cheap & the Fed leans toward expansion instead of restraint.

If Trump puts him back… pic.twitter.com/Fk93xbOeoy

— Shay Boloor (@StockSavvyShay) December 1, 2025

If he is the one, then risk-on markets could rally because he is widely expected to take a dovish stance on interest rates. An increase in the odds of him being the next Federal Reserve Chairman could send Bitcoin to new highs in the medium term. 

Technical Analysis – Bitcoin Drops to A Critical Support Zone

The Yearn Finance issue triggered a  Bitcoin selloff that saw it drop to the $87,905 – 86,636 support zone. If Bitcoin bulls hold the price above this supply zone, then a rally back to the November 28 high of $93,009 could follow. 

On the other hand, if short sellers push the price through the $87,905 – 86,636 support zone, then a correction to prices as low as $80k could follow. Given that the last 24-hour correction has priced in the Yearn Finance breach, Bitcoin is more likely to rally back to $93k. That’s because its core fundamentals remain strong.