Major tokens saw increases up to 5% as Bitcoin peaked over $93,000 on Thursday, a movement described by some traders as a possible false signal amidst high volatility in the crypto market.
Cardano’s ADA increased by 5% following essential network developments, as a governance vote passed a proposal of 70 million ADA to invigorate on-chain activity. Meanwhile, Ether rose by 4% as the Fusaka upgrade launched, aimed at enhancing the network’s capacity to manage larger transaction batches from layer-2 networks.
Attention is currently focused on whether BTC can maintain stability within the $90,000–$91,000 support zone. Market positioning remains delicate following a rapid liquidation cycle earlier in the week, although the overall crypto market is striving to establish higher lows post its late-November downturn.
“On December 3, the crypto market experienced widespread gains as BTC briefly surpassed $93,000 before quickly retracting — a pattern indicative of a potential ‘fake breakout,’ according to Bitunix analysts in correspondence with CoinDesk. “The short-term outlook has transitioned into a volatile pullback, with market participants observing whether BTC can hold steady within the $90,000–$91,000 support band.”
“Conversely, $93,200 appears to be the newly established resistance level,” they noted.
ETF flows displayed a typical divergence. Bitcoin funds attracted $58.5 million in inflows, whereas Ether products experienced $9.9 million in outflows, perpetuating a trend of capital favoring BTC as ETH sees consistent, moderate withdrawals.
This trend has persisted for several weeks, underscoring a sentiment that institutional flows are more inclined to increase bitcoin exposure amidst macroeconomic uncertainty.
Macro developments continue to influence risk sentiment. U.S. President Donald Trump indicated tighter control over the Federal Reserve through strategic personnel changes, announcing plans to reveal his nominee for Fed Chair early next year.
He has consistently suggested that Kevin Hassett is his top choice — perceived as a more dovish candidate supportive of reduced rates.
Market expectations have begun to factor in a potentially more accommodative framework by 2025, despite ongoing inflation levels exceeding targets and a labor market that has yet to cool completely.
Background sentiment was bolstered by recent institutional activity. Vanguard granted its clients access to crypto ETF trading on December 2, reversing years of hesitance toward the asset class. Bank of America also informed institutional clients that they could allocate 1%–4% of their portfolios to digital assets.
The overall market cap has climbed to $3.15 trillion, creating a higher local peak and suggesting early attempts at trend formation, though caution remains below the $3.38 trillion mark.
