The crypto market recovery consolidates with a fourth consecutive day of gains that lifts the sector’s total capitalization to $3.2 trillion. According to Glassnode analysts, although the market remains in a defensive consolidation phase, fresh demand and macroeconomic relief are reconfiguring the current price structure favorably.
Bitcoin leads this rally trading at $91,506 after a 4.7% rise, whilst Ethereum follows the trend recovering the $3,027 level. Przemysław Kral, CEO of ZondaCrypto, highlights that the leverage cleanse removed short-term speculators, allowing the strategic entry of institutional investors with greater conviction in the underlying value. Additionally, optimism is widespread, as 88 of the top 100 coins recorded green numbers, with Kaspa skyrocketing an impressive 20.8% in the last 24 hours.
This rebound occurs in a dynamic global context where Bolivia has marked a historic milestone by reversing its ban on digital assets. The South American country is now preparing to integrate cryptocurrencies into its banking system, starting with stablecoins. Simultaneously, monetary policy expectations in the United States have shifted drastically, with 85% of the market now anticipating a rate cut in December. Bitunix analysts suggest the focus has shifted from policy to the technical battle between bulls and bears in key liquidity zones.
Can Institutional Liquidity Sustain This Rally Amid Fed Changes?
Institutional confidence is clearly reflected in regulated investment products, adding significant net inflows this week. Specifically, BlackRock led the positive flows in Bitcoin and Ethereum ETFs during Wednesday’s session, injecting fresh capital into the ecosystem. Meanwhile, the firm Strategy, the largest corporate Bitcoin holder, launched a new credit-rating dashboard to reassure investors regarding its debt. If the price manages to break the technical resistance of $93,966, we could see a rapid ascent towards the $97,000 target in the short term.
General market sentiment has improved slightly, although the fear and greed index suggests that caution still dominates among traders. Investors should closely watch volatility before the December meeting, as price absorption in the upper range will define the trend definitively for the year-end.
