Market sentiment has improved and liquidations dropped as risk appetite returns. Institutional inflows and ETF activity are supporting short-term gains. Investors are now watching upcoming Fed and BOJ decisions, which could shape Q4 trends.
Bitcoin climbed 8% to trade at $93,786 at press time, while Ethereum pushed back above $3,000 and BNB broke past $900. Many smaller altcoins saw even bigger gains. Sui jumped 30%, Pudgy Penguins surged 26%, and Hyperliquid gained about 10%.
Investor sentiment is also picking up. The Crypto Fear & Greed Index rose five points to 28, shifting from of “Extreme Fear” and into the “Fear” zone.
According to CoinGlass data, 24-hour liquidations fell 1.8% to $482 million while the total crypto market open interest rose 7% to $134 billion. With an average relative strength index of 54, the market is now in neutral territory.
Factors Driving Crypto Prices Today
After over $1 billion in liquidations last week, the drop in short-term selling helped stabilize prices, with institutions and large players stepping in again. Bitcoin spot exchange-traded funds recorded $58 million in inflows on Dec. 2 while Ethereum saw $10 million.
Firms like BitMine Immersion Technologies added over $100 million in ETH during the market downturn. Positive news from regulators and hints at a crypto-friendly Fed chair have encouraged investors to hold longer positions.
Expectations of a Federal Reserve rate cut also pushed interest in risk assets. Polymarket odds for a rate cut at the Dec. 15–16 meeting jumped to 90% from under 50% in late November. Adding to the hype, Vanguard began offering crypto ETFs and mutual funds to its 50 million retail clients, a move that will create new demand in the market.
Ethereum’s Fusaka upgrade, a long-awaited catalyst, is also expected to launch on Dec. 3. It promises faster transactions, lower fees, and improved layer-2 integration.
Macro Watch and Near-Term Outlook
Traders will be watching the Bank of Japan’s mid-December meeting closely. A clear message about a near-term rate hike could push yields higher and put pressure on crypto. At the same time, markets expect a Fed rate cut. If the BOJ raises rates while the Fed lowers them, the new discrepancy between U.S. and Japanese rates could extend volatility in digital assets.
Despite short-term swings, the long-term outlook remains strong. Glassnode reports that Bitcoin has added $732 billion in new capital this cycle, with one-year realized volatility almost halved.
Citi Research says that although we’ll likely keep seeing some speculative ups and downs, the macro-economic environment still looks supportive for riskier assets, helped in part by steady ETF inflows. Meanwhile, Sygnum Bank points out that momentum remains strong overall, even as global tariff worries and ongoing quantitative tightening pose potential risks.
While market swings could test support near $82,000, many analysts still see BTC reaching $125,000–$200,000 by the end of the year.