Bitcoin sees renewed demand, reclaims $93k; check what's driving momentum

After a prolonged decline that saw Bitcoin dip below the $84,000 mark, the flagship cryptocurrency staged a strong recovery, reclaiming the $93,000 level on Wednesday, December 3. 

 

The rebound followed the Federal Reserve’s decision to halt its Quantitative Tightening (QT) program and inject liquidity into the markets, boosting short-term financial stability.  This liquidity surge, combined with declining Bitcoin exchange reserves, analysts said, has created an encouraging environment for upward price momentum. The recovery has been further bolstered by renewed institutional interest, with Vanguard lifting its crypto ETF ban and Bank of America permitting its advisers to recommend crypto exposure.

 

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At the time of writing, Bitcoin was trading at $92,898.49, up 6.51 per cent over the last 24 hours on a trading volume of $680.54 billion. The token fluctuated between $86,404 and $93,003 during the session, according to CoinMarketCap. Despite the rally, Bitcoin remains around 26 per cent below its all-time high of $126,198, reached on October 7. Its market capitalisation stands at $1.85 trillion, still below the $2 trillion threshold, but it retains its position as the largest cryptocurrency by market cap.

Here’s what is fuelling the recovery in Bitcoin

The recovery catalyst, according to Riya Sehgal, research analyst at Delta Exchange, was Vanguard's reversal of its Bitcoin ETF ban, which unlocked new demand through BlackRock’s $IBIT, recording over $1.8 billion in trading volume within two hours. 

 

“BTC printed a $5,000 daily candle — its strongest since May 2025 — lifting the broader crypto market. Total market capitalisation jumped 6.8 per cent to $3.13 trillion, with BTC dominance rising to 59.1 per cent, signaling capital rotation toward major cryptocurrencies,” Sehgal said.

 

Akshat Siddant, lead quant analyst at Mudrex, added that Bitcoin is staging a strong V-shaped recovery, with bullish momentum returning following the Fed’s liquidity injection of $13.5 billion through overnight funding. US financial institutions have also increased their use of repo facilities, further supporting risk assets. “Simultaneously, Bitcoin exchange reserves have dropped to multi-year lows of 2.19 million BTC, contributing to buying pressure,” Siddant explained.

 

However, some analysts caution that the recovery could be driven by defensive trading amid ongoing global macroeconomic pressures. “BlackRock’s public stance on Bitcoin ETFs as a key revenue source is likely to drive steady institutional inflows, fostering ETF adoption rather than triggering a breakout surge. Bitcoin’s OECD levels suggest near-term volatility, with trade conflicts serving as a major driver,” said Nischal Shetty, founder of WazirX.

 

A key structural signal emerged when Bitcoin briefly dipped below its Metcalfe network value for the first time in two years. This has historically been a bullish long-term indicator, rewarding patient holders during market resets. Meanwhile, developments in technology, such as Amazon’s push into AI chips and miners converting facilities for AI, analysts believe, could provide a boost to networks like Ethereum, especially with the Fusaka upgrade scheduled for today.

Key levels to watch

From a technical perspective, Siddant noted that Bitcoin faces resistance near the $96,000 mark, with strong support forming at $87,800. 

 

Sehgal, on the other hand,  highlighted significant resistance in the $93,000–$94,000 range, adding that “sustained strength above these levels could extend the recovery toward $95,000–$97,000, signaling a potential short-term trend reversal.”