Crypto Markets Rebound: Bitcoin Surges Past $90,000 on Strong ETF Inflows
Bitcoin has surged past the $90,000 mark, posting a significant 6.7% gain and triggering a wave of liquidations, as renewed investor confidence flows into cryptocurrency exchange-traded funds (ETFs).
The cryptocurrency market is witnessing a robust rebound, led by Bitcoin's climb to $90,339. This rally marks Bitcoin's first return above $90,000 in a week and at one point positioned the asset for its largest single-day gain since May. The upward movement has been accompanied by substantial trading volume exceeding $92 billion and significant liquidations in the derivatives market. Analysts are pointing to a confluence of factors, most notably strong weekly inflows into crypto ETFs exceeding $1 billion, as a primary driver. However, caution persists as the market's fragility is highlighted ahead of a critical Federal Reserve policy meeting in December.
Bitcoin's Rally: Analyzing the Surge Past $90,000
Bitcoin's price action has been decisive. According to data from CoinGecko, BTC gained 6.7% over a 24-hour period to trade at $90,339. While this is a substantial move, historical context shows that Bitcoin's best single-day performance in 2025 occurred on March 2, when it climbed 9.52%. The recent surge above $90,000 represents a recovery from levels seen the prior week and has injected fresh optimism into the market.
The rally had an immediate and forceful impact on leveraged positions. Data from Coinglass indicates that the price movement triggered the liquidation of $157 million worth of Bitcoin short contracts. Across the broader crypto derivatives landscape, total liquidations surpassed $312 million. This flushing out of leveraged shorts often contributes to accelerated upward price momentum, as forced buy-backs add to buying pressure. Furthermore, the spot market saw vigorous activity, with total trading volume more than doubling to climb above $92 billion.
Altcoins Join the Rally: Ethereum and XRP Post Significant Gains
The bullish sentiment was not confined to Bitcoin. Major altcoins Ethereum and XRP experienced pronounced gains, indicating a broad-based market recovery.
Ethereum (ETH) gained nearly 10% in the past day, briefly climbing above the $3,000 threshold for the first time since the previous Sunday. This performance is particularly notable as it occurs on the eve of Ethereum's anticipated Fusaka network upgrade. Network upgrades often generate investor interest due to potential improvements in scalability, security, or functionality.
Simultaneously, XRP posted a 7.3% gain, with its price reaching $2.14 at the time of reporting. The synchronized upward movement across these major assets suggests a macro-driven shift in capital allocation toward the crypto sector rather than isolated project-specific news.
The ETF Effect: Over $1 Billion Inflows Signal Renewed Institutional Interest
A critical pillar supporting this market rebound is the demonstrated inflow of capital into cryptocurrency-based exchange-traded funds. According to a report from digital asset manager CoinShares, Bitcoin, Ethereum, and XRP ETFs collectively attracted more than $1 billion in net inflows over the past week.
This pattern underscores a established market dynamic where crypto prices often correlate with the flow of assets into and out of these regulated investment vehicles. ETFs provide traditional investors with a familiar and accessible conduit for exposure to digital assets, and sustained inflows are widely interpreted as a signal of growing institutional confidence or retail participation.
However, daily data reveals nuances within this trend. While Bitcoin ETFs maintained positive momentum with $8.5 million in net inflows on Monday, Ethereum ETFs experienced a slight pullback with $79 million in net outflows. Solana-focused funds also saw redemptions worth $13.5 million, according to data from Farside Investors. This indicates that while the overall weekly trend is strongly positive, daily allocations can shift quickly between different crypto assets.
Macroeconomic Crosscurrents: The Fed's Looming Decision and Market Fragility
Despite the positive price action and ETF flows, analysts warn that cryptocurrency markets remain in a fragile state. A predominant factor influencing year-end performance is expected to be the outcome of the Federal Open Market Committee's (FOMC) meeting scheduled for December 9-10.
The macroeconomic backdrop involves recent actions by the U.S. central bank. Analysts at the Wintermute trading desk noted that the Fed ended its quantitative tightening program on Monday. Furthermore, they highlighted that "The Fed injected $13.5 billion via overnight repos to ease year-end liquidity strains, the second-largest since COVID." They clarified that this injection is "a routine tool for short-term stabilization instead of a broader policy shift like resuming asset purchases or QE."
Market participants are now keenly focused on interest rate policy. Prediction market data from Myriad shows users assign a 91% chance that the FOMC will approve another 25 basis point interest rate cut at its upcoming meeting. Historically, expectations of lower interest rates and increased liquidity have been supportive of risk assets like cryptocurrencies, as they reduce the opportunity cost of holding non-yielding assets and can increase capital seeking higher returns.
Strategic Conclusion: Navigating Recovery Amidst Uncertainty
The cryptocurrency market's rebound past key psychological levels like Bitcoin's $90,000 and Ethereum's $3,000 is a significant development driven by measurable capital inflows into ETFs and supportive technical factors like short liquidations. The participation of major altcoins suggests a healthy broadening of the rally beyond Bitcoin alone.
However, this recovery exists within a framework of macroeconomic uncertainty centered on Federal Reserve policy. The substantial ETF inflows demonstrate tangible demand but daily fluctuations between asset classes—such as the outflows from Ethereum and Solana funds—highlight ongoing volatility and shifting investor preferences.
For professional observers and participants, the immediate focus should be on two concurrent streams: the sustainability of ETF inflows beyond a single week's data and the definitive policy signals from the Federal Reserve's December meeting. The interaction between sustained institutional investment products and macro-monetary policy will likely set the tone for the cryptocurrency market as it moves into year-end. While current momentum is positive, the market's acknowledged fragility suggests that volatility remains an ever-present factor, demanding disciplined risk management even amidst rallies