Bitcoin retests US$94K as crypto markets rebound

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Introduction

The crypto market clawed back from November's harsh losses. Bitcoin led a broad recovery, jumping 8% to close above US$93,000, while Ethereum edged up 12% to US$3,100 on the back of its Fusaka upgrade.

Blue-chip altcoins like Solana posted stronger gains, up 12%, fuelled by ETF optimism. The Fed officially ended QT on December 1 and injected US$13.5 billion via overnight repos, marking the second-largest liquidity operation since COVID-19.

This shift removes US$2.4 trillion in tightening pressure accumulated since June 2022 and could provide structural support for risk assets including crypto. Markets are pricing 89% probability of a 25bps rate cut at the December 9-10 FOMC meeting.

Check prices on the BTC Markets exchange.

State of crypto

• Bitcoin retests US$94,000 after November's 17% drop
• Ethereum climbs 12% past US$3,100 following Fusaka upgrade launch
• Solana surges 12% on revelation of Cantor Fitzgerald ETF holdings
• Federal Reserve ends quantitative tightening, injects US$13.5B in liquidity
• BlackRock adds US$120 million in Bitcoin to its ETF holdings

November's scars meet December's spark

The week encapsulated crypto's volatile essence, blending regulatory teases, technical milestones, and economic jitters. Bitcoin's sharp Monday flush to US$80,600 tested nerves, but by Wednesday, it reclaimed US$93,958 as BlackRock scooped up US$120 million in spot BTC via its ETF.

Ethereum's Fusaka upgrade went live on 3 December, boosting layer-2 scalability and nudging ETH above US$3,100 for the first time since mid-November. Altcoin action heated up with Solana climbing 12% to US$144 on positive ETF news, while XRP held steady at US$2.20.

Bitcoin holds firm near highs

Bitcoin bounced back to US$94,000 this week, regaining ground after November losses. Spot Bitcoin ETFs saw US$3.48 billion in outflows last month, suggesting some profit-taking after strong inflows earlier in the quarter. Despite this, macro conditions remain supportive. Inflation continues to cool, and markets are pricing in rate cuts for early 2026, which could sustain risk appetite. However, liquidity risks persist as central banks’ balance growth and stability.

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Ethereum steadies amid upgrade optimism

Ethereum hovered above US$3,100, supported by optimism around upcoming protocol upgrades and growing institutional staking products. ETF outflows of over US$1 billion indicate rotation into alternative assets, but Ethereum’s fundamentals remain strong. Developer activity is robust, Layer 2 adoption is accelerating, and institutional staking continues to gain traction. For investors, Ethereum remains a core holding for those seeking exposure to smart contract infrastructure and decentralised
finance.

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Solana dominates headlines

Solana was the clear standout this week. Despite a record US$13.55 million ETF outflow breaking a 21-day inflow streak, cumulative inflows exceed US$600 million, underscoring sustained institutional appetite. Cantor Fitzgerald’s US$1.28 million ETF stake and Vanguard’s platform shift further legitimise Solana exposure. On-chain metrics remain strong, with US$8.56 billion in total value locked and stablecoin liquidity near all-time highs. Beyond price action, Solana’s growing role in machine-to- machine payments and prediction markets signals practical adoption that could underpin long-term demand.

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Ripple to expand payment activities in Singapore

Ripple has secured approval from the Monetary Authority of Singapore to expand its payment activities in the region under its Major Payment Institution license. This expansion allows Ripple to widen the reach of its regulated cross-border payments offerings, including via the XRP cryptocurrency and its dollar-pegged stablecoin, RLUSD. The company's payments system utilizes RLUSD and XRP for international transactions, serving as an on-ramp and off-ramp for banks and fintech.

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Crypto Fear & Greed Index

Source: Fear & Greed Index

BTC Markets in the news

AFR: Fear and loathing come for bitcoin as big investors ponder selling

“Even the idea of Strategy selling is likely to spook a lot of holders, and if they do start to sell, the spiral could be brutal,” said Charlie Sherry, the Melbourne-based head of finance at BTC Markets. “Bitcoin doesn’t break, but players do. Keep an eye on Strategy’s equity and credit windows - stress there could ripple through the market faster than you think.”

Ausbiz: Is Bitcoin back?

Charlie Sherry from BTC Markets observes heightened volatility in the cryptocurrency market, with Bitcoin experiencing sharp swings between $80,000 and $92,000 over recent days. Sherry points to thin liquidity and mass liquidations, nearly $1 billion USD in leveraged positions and over a quarter of a million traders forced to liquidate, which amplifies this volatility.

The Block: Bitcoin slides below $86,500, wiping out $144 billion in crypto market cap

"It's more about positioning than fundamentals," BTC Markets Crypto Analyst Rachael Lucas told The Block. "December cut odds have climbed to around 85%, but the market priced that in months ago during the September-October rally."

Announcements

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Our AI engine scans trusted sources, summarises key developments, and delivers clear insights, all in one place.

You can access AI News & Insights from the Explore section on the Simple Trade platform.

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The week ahead: Economic events

Thursday, December 4th

• Australia Balance of Trade
• Canada Ivey Purchasing Managers Index

Friday, December 5th

• Canada Unemployment Rate
• United States Core PCE Price Index MoM, Michigan Consumer Sentiment, Personal Income, Personal Spending

Monday, December 8th

• China Balance of Trade, Exports YoY, Imports YoY

Tuesday, December 9th

• Australia Business Confidence, Interest Rate
• Germany Balance of Trade
• United States Job Openings

Wednesday, December 10th

• China Inflation Rate
• Canada Interest Rate

Source: Trading Economics

Market reflections

• United States: Private payrolls fell by 32,000 in November, boosting odds of a Fed rate cut
• Europe: Euro zone business activity improved, driven by a rebound in services
• China: Factory sector signalled an eighth straight month of contraction
• Japan: JGB yields jumped after markets priced a likely BoJ rate hike
• Australia: Growth missed forecasts as weak inventories offset domestic demand

Macroeconomic updates this week offered a clearer sense of how major economies are responding to softer data and evolving policy expectations. Economic momentum shifted again in the United States after private payrolls fell by 32,000 in November. The decline surprised markets and strengthened expectations of a December rate cut by the Federal Reserve. The softer labour reading added pressure on the dollar and supported the case for policy easing.

The mood in Europe remained cautious but stable. New survey data showed euro-zone inflation and growth metrics holding close to target, which cooled speculation of near-term rate cuts by the European Central Bank. With price pressures appearing contained and demand only modest, markets appear ready for policy to hold steady.

China’s manufacturing sector provided another warning sign. The country’s factory sector signalled its eighth straight month of contraction, as weak external demand and fragile domestic consumption weighed on output and investment. This slump reinforces the pressure on Chinese policymakers to step up support for growth.

Meanwhile in Japan, concerns over monetary policy triggered a sharp move in bond markets. Government bond yields surged on rising expectations that the Bank of Japan may hike rates soon, a signal reflected in renewed strength for the yen.

Australia’s economy showed signs of mixed health: while household demand drove consumption higher, weak inventory trends weighed on overall output, leaving quarterly growth below forecasts. The result keeps policymakers alert as global volatility rises.

Overall, this week’s data paints a patchwork global picture, with some economies inching toward policy loosening, others grappling with contraction or stubborn inflation, and a handful balancing precariously between both. Markets will likely continue to trade on policy expectations and shifting yield dynamics soon.

Looking ahead

Expect continued volatility as markets digest ETF flows and macro signals. Bitcoin’s consolidation near US$93,000 suggests a pause before the next move, while Ethereum’s resilience above US$3,000 reflects steady fundamentals. Solana remains the wildcard, with institutional adoption and technical signals pointing to potential upside despite short-term ETF outflows. As December unfolds, keep an eye on macro catalysts such as central bank commentary and liquidity trends, which will shape risk appetite across digital assets.

Online safety: How to stay safe in online relationships

Online platforms such as dating apps, social media, and gaming communities make it easy to meet new people. While many connections are genuine, some individuals build relationships with the intention of gaining access to your money or personal information.

They may offer frequent attention, encourage you to move conversations to private apps, or share stories designed to create empathy or urgency. Over time, they may ask for financial support, suggest investment opportunities, or request personal images that could be misused later.

What to watch out for

• A relationship that develops unusually quickly or feels too perfect.
• Frequent excuses to avoid video calls or in-person meetings.
• Requests to move the conversation to private or encrypted messaging apps.
• Suggestions to send cryptocurrency, open accounts, or transfer funds.
• Discouraging you from speaking with friends or family about the relationship.
• Profiles with minimal information, inconsistencies, or reused photos.

How to stay safe

• Avoid sending money or cryptocurrency to anyone you have not met in person.
• Be cautious of investment ideas or opportunities shared by online contacts.
• Use reverse image search to check whether profile photos appear elsewhere.
• Speak with someone you trust if something feels unusual or uncomfortable.
• Never transfer money on behalf of someone else, as this could involve you in unlawful activity.

Learn more at scamwatch.gov.au.

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