Bitcoin surged back above the $93,000 level, marking its highest price in two weeks. The rebound is driven by a combination of institutional news flow and a “short squeeze” that lifted market sentiment ahead of next week’s pivotal Federal Reserve meeting.
Despite the recent rally—which saw BTC jump approximately 8% since Monday’s lows—traders and analysts caution that the market remains in a “wait-and-see” mode rather than beginning a sustained new upward trend.
The broader crypto market followed Bitcoin’s lead, with the total market capitalization climbing to around $3.2 trillion. Ether (ETH) reclaimed $3,000 on optimism surrounding the upcoming Fusaka upgrade, while major altcoins like Solana (SOL) and BNB also saw broad gains.
This short squeeze coincided with sustained investor interest in U.S. spot Bitcoin ETFs, which recorded approximately $58.5 million in net inflows on December 2, marking the fifth consecutive day of positive flows. Solana-related products also saw strong inflows, taking in $45.8 million over the same period.
The influx of capital comes as large traditional finance firms begin integrating digital assets more deeply. Vanguard has reversed its long-standing stance, moving to allow clients to trade funds that hold crypto, including Bitcoin, XRP, and Solana.
Bank of America has reportedly issued internal guidance for Merrill and Private Bank clients suggesting a crypto allocation of 1% to 4%. The bank is also set to begin CIO coverage of four spot Bitcoin ETFs, including BlackRock’s IBIT, early next year.
Underneath the bullish action, the macro environment remains the key factor. QCP Capital noted that the markets are “calm on the surface, tense underneath,” with Bitcoin consolidating ahead of the Federal Open Market Committee (FOMC) meeting on December 10.
