Bitcoin jumps back above $93K as short liquidations and fresh institutional interest help fuel rebound ahead of Fed meeting
Bitcoin reclaimed $93K, driven by short squeezes and institutional interest, though analysts urge caution before the Fed meeting.Summary
Bitcoin surged back above $93,000, marking an 8% jump from Monday's lows, fueled by forced short liquidations around that price level and positive sentiment from institutional developments. Ether also recovered $3,000, supported by optimism for the upcoming Fusaka upgrade. Tailwinds included five straight days of net inflows into U.S. spot Bitcoin ETFs ($58.5 million on Dec. 2). Furthermore, major firms like Vanguard are expanding crypto access, and Bank of America reportedly set internal guidance for a 1% to 4% crypto allocation for its clients. Despite this rebound, market sentiment remains cautious ahead of the Federal Open Market Committee meeting on December 10, where a 25-basis-point rate cut is largely expected. Analysts note that while the rally restores confidence and highlights the impact of short squeezes, underlying structural issues like strained miner profitability and macro uncertainty persist, suggesting the move is tactical rather than a structural shift.
(Source：The Block)