On December 2nd, the Bitcoin price rallied near $91,000, being on track for its biggest daily gain since May 2025, amidst an optimistic market. The general crypto market is up by over 7% in the past 24 hours, hitting a market cap of over $3.09 trillion.
Bitcoin’s rally is fueled by a pause in long liquidations and growing institutional interest in the ecosystem, amidst bullish predictions for 2026.
Bitcoin Price Action
At the moment of writing this article, BTC is trading above $90,000, after nearing $91,000 earlier today. The digital asset is up by almost 7% in the past 24 hours in a very bullish market.
After a recent period of significant crypto liquidations, long liquidations have eased, with short positions totalling over $217 million in the past 4 hours, and longs totalling over $16 million.
In the past 24 hours, the total crypto liquidations were over $382 million, with almost $316 million in shorts and almost $67 million in longs, data from CoinGlass shows.
Earlier, the Kobeissi Letter noted that Bitcoin is on track for the biggest daily gain since May 2025, as levered short liquidations surge, highlighting that the recent swings in crypto are entirely mechanical.
The recent Bitcoin and crypto rally is fueled by market optimism stemming from multiple factors, including TradFi’s surging interest in the industry.
Institutional Interest in Bitcoin and Crypto
According to the latest reports, Bank of America, one of the largest US financial institutions, shows interest in the crypto industry. Starting in January 2026, the bank’s wealth management advisers will be allowed to recommend a 1% to 4% allocation to BTC.
The bank is endorsing an allocation to digital assets for clients of its Merril, Bank of America Private Bank, and Merril Edge platforms.
Yahoo Finance reported that the investment strategies will begin covering 4 BTC ETFs next month, starting January 5th:
- •Bitwise’s BTC ETF (BITB)
- •Fidelity’s BTC ETF (FBTC)
- •Grayscale’s BTC ETF (BTC)
- •BlackRock’s BTC ETF (IBIT)
Chris Hyzy, CIO at Bank of America Private Bank said that for investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation between 1% and 4% in digital assets could be appropriate.
The news comes after Vanguard asset management titan reversed its long-standing policy and will allow its clients to access crypto ETFs as well, according to Bloomberg reports.
These are huge signs of rising institutional interest in Bitcoin and crypto, amidst rising global adoption, and will contribute to pushing BTC to new ATHs, in line with the latest bullish predictions.
BlackRock Predicts a New Rate Cut Next Week
Speaking of institutional investors in Bitcoin and crypto, BlackRock, another giant asset manager, announced earlier via an X post that the US Fed is poised to cut rates for the third time in 2025 during the next FOMC meeting set to take place on December 10.
The team at BlackRock believes that the Fed will cut rates, despite the October and November payrolls data.
The Fed is poised to cut rates for a third time next week, even without October and November payrolls data. Is it warranted? The BlackRock Investment Institute thinks so. Learn why ⬇
— BlackRock (@BlackRock) December 2, 2025
CME Group shows a probability of over 87% for a new interest rate cut next week.
Optimistic predictions for BTC and crypto keep pouring into the market, and earlier today, Binance’s founder, CZ, also said he’s expecting new ATHs coming soon.
With the latest ending of QT by the US Fed, and rising adoption of Bitcoin and crypto globally, the future looks bright, following a period of intense volatility in the markets.