Bitcoin has returned to local highs. On Wednesday, the price rose above $94,000 for the first time in two weeks—a market attempt to at least partially recover after the collapse that wiped out more than $1 trillion in capitalization since early October.
At the time of publication, bitcoin was around $93,700, continuing to hold a daily gain of about 2.6%. This mark became the highest since November 17. Ether accelerated even more, adding about 10% and rising to $3,092. XRP grew by 8%, Solana by 11.7%, according to CoinGecko.
This is the first more or less significant rebound in recent weeks—but there is little confidence in it.
The market tries to calm down after words from the CEO of Strategy Inc.
A new wave of selling began on Monday. The reason was comments from Strategy Inc. head Phong Le, who allowed for the possibility of selling part of the company’s bitcoins to cover debt obligations.
This was enough for the market to crash again. Later, Strategy announced a $1.4 billion reserve, supposedly intended to cover liquidity. But trust had already been undermined.
Traders noted the absence of large buyers above. According to Sean McNulty of FalconX, “we don’t see sustainable demand for a breakout,” and sentiment remains shaky. This was also confirmed by flows into exchange-traded funds.
Tuesday brought only $59 million of inflows into 12 American bitcoin funds—a very weak result amid increased volatility.
Two news items helped crypto make a short-term rebound
The recovery began after two signals that the market perceived as potentially positive.
- First: Securities Commission head Paul Atkins announced the preparation of a regulatory “innovation exemption” that will create a separate regulatory regime for companies working with digital assets.
- Second: Vanguard—the largest platform for passive investors—announced support for trading funds and products with a large share of crypto assets. This is a turning point, considering the company’s long-standing position that “crypto is unnecessary.”
Against this backdrop, the market quickly closed some shorts. According to Coinglass, about $400 million in short positions were liquidated in a day.
This is only a “breather” for now — QCP
On Bloomberg TV, QCP Group head Melvin Deng called the growth temporary. According to him, the current rebound is a “classic breather after a sharp fall.” He allowed that bitcoin may “recover some momentum,” especially among those who missed previous market moves. But the overall picture remains fragile.
The market has moved into wait-and-see mode. The key event is the Fed meeting next week. Traders are pricing in almost a 90% probability of a 25 bp rate cut. And it is the Fed’s decision that could determine the market’s direction for December.
Additional pressure came from the Tether story
In addition to volatility in bitcoin, another factor is weighing on the market: the stability of the largest stablecoin, USDT. Last week, S&P Global Ratings assigned USDT a “weak” rating—the lowest possible level of resilience.
The report noted that if bitcoin falls sharply again, USDT’s reserve structure could come under pressure. For the market, this is a potential systemic threat: USDT’s share exceeds $184 billion, and any problems with the issuer instantly spread to the liquidity of the entire sector.
What’s next?
Bitcoin is holding near $94,000, but there is no clear confirmation of strength. ETF flows remain minimal. There are few drivers. Sentiment is unstable. To consolidate above, the market needs a combination of three factors:
- strong demand from funds
- clear signals from the Fed
- absence of new shocks (Strategy, Tether, debt market)
None of the three are being met so far. But the first signs of recovery have appeared—and now the market is watching to see if bitcoin can break through resistance in the $95–96k area, where large liquidity is concentrated.
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