Bitcoin Bounces Back, Hits $93k Again
Following an extended downturn that pushed Bitcoin beneath the $84,000 threshold, the leading cryptocurrency mounted a robust comeback, regaining the $93,000 mark on Wednesday, December 3. The rebound came after the Federal Reserve’s choice to pause its Quantitative Tightening program and infuse liquidity into the markets, enhancing short-term financial stability. Analysts noted that this liquidity surge, along with the decline in Bitcoin exchange reserves, has fostered a promising atmosphere for upward price momentum. The recovery has gained momentum thanks to a resurgence of institutional interest, highlighted by Vanguard’s decision to lift its crypto ETF ban and Bank of America’s move to allow its advisers to recommend crypto exposure. As of the latest update, Bitcoin is priced at $92,898.49, reflecting a 6.51 percent increase in the past 24 hours, with a trading volume reaching $680.54 billion. During the session, the token fluctuated between $86,404 and $93,003, and despite the rally, Bitcoin remains approximately 26 percent below its all-time high of $126,198 reached on October 7, with a market capitalisation of $1.85 trillion.
Riya Sehgal highlighted that the recovery catalyst was Vanguard’s decision to reverse its Bitcoin ETF ban, unlocking new demand, particularly through BlackRock’s $IBIT, which saw over $1.8 billion in trading volume within two hours. “BTC printed a $5,000 daily candle — its strongest since May 2025 — lifting the broader crypto market,” Sehgal stated. Total market capitalisation surged by 6.8 per cent to $3.13 trillion, while BTC dominance rose to 59.1 per cent, indicating a shift in capital toward leading cryptocurrencies. Akshat Siddant added that Bitcoin is experiencing a robust V-shaped recovery, with bullish momentum re-emerging after the Fed injected $13.5 billion in liquidity through overnight funding. U.S. financial institutions have increased usage of repo facilities, providing further support for risk assets, while Bitcoin exchange reserves have dropped to multi-year lows of 2.19 million BTC, contributing to buying pressure.
However, some analysts warn that the recovery may be fueled by defensive trading amid persistent global macroeconomic pressures. “BlackRock’s public stance on Bitcoin ETFs as a key revenue source is likely to drive steady institutional inflows, fostering ETF adoption rather than triggering a breakout surge,” stated Nischal Shetty adding that Bitcoin’s OECD levels suggest near-term volatility with trade conflicts acting as a major driver. A notable structural signal emerged as Bitcoin briefly fell below its Metcalfe network value for the first time in two years, historically a bullish long-term indicator for patient holders through corrections. In broader crypto developments, advancements in technology — including Amazon’s entry into AI chips and miners repurposing facilities for AI — are seen as potential catalysts for networks like Ethereum ahead of the anticipated Fusaka upgrade occurring today.
From a technical perspective, Siddant noted that Bitcoin faces resistance around the $96,000 level, while strong support is forming at $87,800. Sehgal pointed out notable resistance in the $93,000–$94,000 range, stating that “sustained strength above these levels could extend the recovery toward $95,000–$97,000, signaling a potential short-term trend reversal.” Despite the volatility, analysts agree that liquidity injections, declining exchange reserves, and fresh institutional participation are collectively supporting Bitcoin’s recovery trajectory, even as macroeconomic tensions and technical barriers continue to influence its near-term direction.
