TL;DR:
- Crypto market cap reaches $3.1T amid a $6.56T Fed liquidity balance.
- Short-term Bitcoin holders are recovering from max-pain losses, boosting optimism.
- Market trends show price breaking above the 50-period EMA, with strong trading volume and RSI momentum indicating potential sustained upward movement.
The cryptocurrency market is showing signs of recovery, with total market capitalization reaching $3.1T as traders monitor the Federal Reserve’s expanding $6.56T balance sheet. Market participants are now analyzing liquidity alongside short-term Bitcoin holder trends, noting that many coins are moving out of max-pain zones. This combination of factors is creating optimism for sustained crypto gains despite the recent November sell-off.
🚨 BREAKING:
🇺🇸 FED TO DROP BALANCE SHEET TODAY AT 4:30 PM
IF BALANCE EXCEEDS $6.55T = MARKET WILL GO PARABOLIC
EXPECT HIGH VOLATILITY!! pic.twitter.com/js8dRw5W2k
— ᴛʀᴀᴄᴇʀ (@DeFiTracer) November 28, 2025
Fed Liquidity and Short-Term Bitcoin Holders Drive Market Momentum
The Federal Reserve’s weekly balance sheet report highlights $6.56T in total assets, down from its peak of $8.97T, setting a new reference for market liquidity. Analysts note that surpassing $6.55T could catalyze significant gains in risk assets. Although this reading is routine, traders are closely evaluating its implications for broader macro trends and crypto price stability.
Short-term Bitcoin holders are recovering from extreme loss periods, as on-chain data shows the supply profit and loss ratio moving back toward break-even levels. Analysts interpret this as evidence that many recent buyers have absorbed max pain, potentially limiting forced selling. Historical patterns suggest that such recovery phases often coincide with market stabilization and renewed upward momentum.
The global crypto market is breaking above its 50-period exponential moving average, with the total market cap climbing above $3.1T from recent lows under $3T. Trading volume remains strong during the rebound, signaling renewed buyer activity. The 14-period RSI indicates positive momentum, moving from oversold to stronger zones, suggesting that sellers are losing influence and capitalization is steadily rebuilding.
Market analysts emphasize the importance of combining liquidity insights with on-chain metrics, noting that both Fed asset levels and Bitcoin short-term holder recovery are key to forecasting near-term price movements. Investors are watching carefully to see whether these trends support continued upward performance across major cryptocurrencies, including Bitcoin and Ethereum, as the broader market seeks stability.
