Top tokens added up to 5% more than bitcoin was hovering around $93,000 on Thursday, a move some traders described as a possible fake, as volatility remained elevated across the crypto market.
Cardano’s ADA added 5% as key network developments approved a 70 million ADA proposal to boost on-chain activity, in a first-of-its-kind governance vote. Ether moved 4% when the Fusaka upgrade went live, with the upgrade designed to help the network handle the increasingly large batches of transactions coming from the Layer 2 networks that sit on top of it.
Attention now turns to whether BTC can stabilize in the $90,000 to $91,000 support region. Market-wide positioning remains fragile after a strong sell-off cycle at the start of the week, although the broader crypto market is still attempting to reach higher lows following its late November crash.
“On December 3, the cryptocurrency market saw broad gains as BTC briefly surpassed $93,000 before quickly retracing its advance, a structure resembling a potential ‘false breakout,'” Bitunix analysts told CoinDesk in an email. “The short-term setup has turned into a choppy pullback, with markets watching to see if BTC can stabilize within the $90,000-$91,000 support zone.”
“On the positive side, $93,200 has emerged as the new resistance band,” they added.
ETF flows showed a familiar divide. Bitcoin funds recorded inflows of $58.5 million, while Ether products recorded outflows of $9.9 million, continuing a trend of capital rotation into BTC while ETH faces steady and moderate withdrawals.
This pattern has persisted for several weeks, reinforcing the view that institutional flows remain more comfortable adding exposure to bitcoin during periods of macroeconomic uncertainty.
Macroeconomic developments continued to shape risk sentiment. US President Donald Trump signaled tighter control over the Federal Reserve through key personnel decisions, saying he plans to announce his nominee for Federal Reserve chairman early next year.
He has repeatedly suggested that Kevin Hassett is his preferred choice, a candidate widely seen as more moderate and supportive of lower rates.
Markets have begun to value the possibility of a more accommodative framework in 2025, although that perspective clashes with inflation still above target and a labor market that has not completely cooled.
Overall sentiment received a boost thanks to recent institutional moves. Vanguard opened access to crypto ETF trading for its clients on December 2, reversing years of resistance to the asset class. Bank of America separately told institutional clients that they can allocate between 1% and 4% of portfolios to digital assets.
The overall market capitalization has risen to $3.15 trillion, forming a higher local peak and signaling early attempts at trend formation despite continued caution below the $3.38 trillion threshold.
