Bitcoin Rebounds Above $93,000 as Institutional Flows Remain Cautious

Bitcoin Climbs to Two-Week High

Bitcoin has bounced back above $93,000, marking its strongest performance in two weeks after a turbulent drop that wiped over $1 trillion from global cryptocurrency valuations since October. The leading digital asset briefly touched $94,000 before easing slightly, while Ethereum gained momentum following the launch of its latest Fusaka network upgrade.

Market data shows Bitcoin has now regained around 8% from last week’s low. Yet, despite the rebound, investor confidence remains fragile. Analysts caution that BTC needs to hold the $92,000–$93,000 support range to signal a more sustainable recovery.

In broader terms, Bitcoin is still down roughly 26% from its all-time high of $126,000 set in early October, leaving total crypto market capitalization near $3.15 trillion, compared to above $4 trillion just two months earlier.

Institutional Caution Persists

Institutional trading activity remains muted. Spot Bitcoin ETF inflows totalled only $58.5 million on December 2, marking five consecutive days of net-positive flows but still subdued compared with October’s record surges.

BlackRock’s IBIT fund led with $122 million in new capital.
ARK Invest’s ARKB, however, faced a $91 million outflow.
The overall market shows investor hesitation, reflecting persistent uncertainty about near-term volatility.

Federal Reserve Outlook

Investor sentiment is also being shaped by expectations of an upcoming Federal Reserve rate cut. According to the CME FedWatch Tool, markets now see an 89% likelihood of a 25-basis-point reduction at the December 10 meeting — a move that could boost liquidity and risk appetite for cryptocurrencies.

The shift towards monetary easing follows dovish comments from New York Fed President John Williams and a series of weaker US employment reports, both of which have fueled optimism for a softer policy stance heading into 2026.

Traditional Finance Slowly Warming to Crypto

Despite weak inflows, signs of broader institutional acceptance are emerging:

Vanguard, which oversees more than $11 trillion in assets, reversed its long-standing ban on crypto products on December 2, allowing clients access to Bitcoin and Ethereum ETFs.
Bank of America followed by recommending 1–4% crypto allocations for wealth clients and is preparing to extend coverage to four Bitcoin ETFs in early 2026.

Such moves from major financial institutions suggest that institutional adoption may strengthen once market volatility stabilises.

Ethereum Boosted by Network Upgrade

Ethereum also rose above $3,200 after the Fusaka upgrade went live on December 3. This upgrade:

Increases the block gas limit from 45 million to 60 million.
Expands blob capacity eightfold, enhancing performance for Layer 2 networks.
Improves transaction efficiency and scalability — crucial to supporting future growth in decentralised applications (dApps).

Although ETH remains over 30% below its 2025 highs, developers and investors hail Fusaka as an important step toward improving the network’s resilience and long-term potential.

Outlook: Volatility Likely, But Sentiment Improving

For now, crypto markets remain in a delicate recovery phase. The combination of slowing inflation, cautious institutional flows, and supportive policy expectations is offering a mixed picture.
If Bitcoin sustains levels above $93,000, traders say the next resistance lies near $96,500, with potential upside momentum driving renewed optimism into year-end.

Still, any sharp reversal in sentiment—or stronger macroeconomic data—could quickly dampen enthusiasm, reminding investors that the current rally is fragile, not yet confirmed.