BTC Pops Back Above $93K as Shorts Get Squeezed, but Miner Stress Keeps Caution High

What’s Driving BTC’s Latest Rebound?

BTC has surged back above $93,000 as a burst of short liquidations and another round of inflows into U.S. spot ETFs lifted the market ahead of next week’s Federal Reserve meeting. BTC is up roughly 8% from Monday’s lows, trading at its strongest level in two weeks. Ether regained the $3,000 area, assisted by optimism around the upcoming Fusaka upgrade, while the broader crypto market cap has climbed toward $3.2 trillion with support across major altcoins including SOL and BNB.

BRN Head of Research Timothy Misir said the rebound was amplified by forced purchaseing as heavily crowded shorts were cleared out above $93,000. platform order books, he noted, showed “dense clusters of liquidation levels” near that area.

“Short-liquidation clusters are active; forced covering is amplifying the move and increasing near-term volatility,” Misir said. He also said BTC has attracted roughly $732 billion in new capital this cycle — more than double the prior cycle’s total.

ETF flows reinforced the move. saw about $58.5 million in net inflows on Dec. 2, marking a fifth straight positive day, according to The Block’s data. Solana products pulled in $45.8 million over the identical stretch, while ETH ETFs recorded a modest $9.9 million outflow.

Investor Takeaway

Why Are Wall Street Moves Fueling Sentiment?

The rally comes as traditional financial firms loosen long-standing restrictions around crypto access. Vanguard has begun allowing clients to trade funds holding assets such as BTC, XRP and Solana, reversing its years-long stance of avoiding the sector.

Bank of America has reportedly issued internal guidance suggesting a 1% to 4% crypto allocation for Merrill and Private Bank clients. The bank will also begin CIO coverage of four ahead next year, including BlackRock’s IBIT. Misir said these changes lower frictions for large capital pools that previously struggled to add exposure.

“These steps reduce structural capital frictions,” he said, adding that more accessible products make it easier for institutions to stay involved through market swings.

How Much Does the Fed Matter From Here?

Despite the rebound, traders remain cautious. A Wednesday note from QCP Capital described conditions as “calm on the surface, tense underneath,” with BTC consolidating in the mid-$90,000s as markets prepare for the December Federal Open Market Committee meeting.

Futures markets now imply close to a 90% chance of a 25-basis-point “insurance cut.” Prediction platforms Kalshi and Polymarket show similar odds. Still, QCP said uncertainty around future Fed leadership adds another layer of risk. Betting markets now lean toward Kevin Hassett as the next Fed chair, a choice some investors view as dovish.

The next policy decision will also arrive without fresh CPI or , giving the committee less information than usual. Any shift in tone could jolt volatility across risk assets.

Are Onchain Signals Supporting the Move?

Onchain indicators show mixed conditions. Misir pointed to a new $1 billion Tether mint on Tron as a sign of improving liquidity and flagged large strategic purchases — including nahead 97,000 ether accumulated by Tom Lee’s BitMine ahead of the Fusaka upgrade.

But miner margins remain thin, keeping supply risk in focus if prices falter. Whale accumulation has also sluggished. One key drag, however, has eased: QCP noted that Strategy created a $1.4 billion dividend reserve fund, extending its runway and reducing immediate pressure to trade BTC.

QCP warned that events like January’s MSCI index review and upcoming Fed decisions could easily trigger new volatility spikes.

Investor Takeaway

Is This a Turning Point or Just a Reset?

Analysts describe the rebound as a “confidence boost” rather than the begin of a new sustained move. Misir said the session shows how rapidly forced liquidations can push prices higher but warned that deeper issues remain unresolved.

“Today’s move matters because it restores confidence and proves how rapidly forced liquidations can feed momentum,” he said. “But it did not fix the structural issues: miner profitability is strained, large-holder behaviour is mixed, and macro uncertainty persists.”

QCP echoed that view, arguing that rallies should still be treated as tactical moves until ETF flows, onchain supply dynamics and provide a clearer signal of a durable trend.