TL;DR:
- BTC jumps past $90K, triggering $312M in crypto derivative liquidations.
- ETH rises above $3,000 ahead of Fusaka upgrade, XRP surges 7.3% to $2.14.
- ETFs added over $1B last week, Fed liquidity measures eased market pressures.
Bitcoin led a dramatic crypto market rebound, climbing past $90,000 in its strongest rally since May as Ethereum and XRP also posted notable gains. The surge came a day after heavy sell-offs wiped out billions across crypto derivatives, highlighting both the volatility and resilience of digital assets. Investors responded quickly, seizing buying opportunities as liquidations reshaped market positions.
ETF Inflows and Market Rebound Spark Short-Covering Frenzy
Bitcoin jumps 6.7% in a single session to $90,339, triggering $157 million in Bitcoin short liquidations and over $312 million across crypto derivatives, according to Coinglass. Trading volumes more than doubled to $92 billion, reflecting heightened market activity. Analysts note that while this rebound is significant, markets remain fragile ahead of the Federal Reserve’s December 9–10 FOMC meeting, where further rate decisions could influence year-end performance.
Ethereum climbs above $3,000 amid anticipation of the Fusaka network upgrade. ETH gained nearly 10% in a single day, demonstrating strong investor appetite for assets tied to major network developments. Market watchers highlight that such rallies, though promising, can quickly reverse if macroeconomic signals shift, underscoring the persistent risk in crypto markets.
XRP surges 7.3% to $2.14 as traders adjusted positions following the sell-off. Despite bullish price action, liquidity remains a key concern, with large ETF inflows influencing the short-term momentum. Digital asset manager reports indicate that crypto ETFs attracted over $1 billion last week, with Bitcoin funds seeing $8.5 million net inflows, while Ethereum and Solana ETFs experienced minor withdrawals.
Fed liquidity injections provided temporary relief as the central bank’s $13.5 billion overnight repo eased year-end pressures. Analysts emphasize that such measures stabilize markets in the short term without signaling a broader monetary shift. Crypto investors continue to track fund flows and macro signals closely, with Myriad users assigning a 91% probability to a potential 25 basis point Fed cut next week.
Market watchers conclude that while BTC, ETH, and XRP have recovered after significant liquidations, short-term volatility and macroeconomic factors will remain critical drivers as 2025 closes.
