Bitcoin Zooms Above $93K; Traders Warn of ‘Fakeout Rally’

Major tokens added as much as 5% as bitcoin BTC$93,332.37 hovered above $93,000 on Thursday, a move some traders described as a potential fake-out as volatility stayed elevated across the crypto market.

Cardano’s ADA added 5% as key network developments passed a 70 million ADA proposal to jumpstart on-chain activity, in a first such governance vote. Ether ETH$3,196.86 moved 4% as the Fusaka upgrade went live, with the update designed to help the network handle the increasingly large transaction batches coming from the layer-2 networks that settle on top of it.

Attention is now centered on whether BTC can stabilize in the $90,000–$91,000 support region. Market-wide positioning remains fragile after a sharp liquidation cycle at the start of the week, though the broader crypto market is still attempting to carve out higher lows after its late-November drawdown.

“On December 3, the crypto market saw broad gains as BTC briefly broke above $93,000 before swiftly giving back its advance — a structure that resembles a potential “fake breakout,” Bitunix analysts told CoinDesk in an email. “The short-term setup has shifted into a choppy pullback, with markets watching whether BTC can stabilize within the $90,000–$91,000 support zone.”

“On the upside, $93,200 has emerged as the new resistance band,” they added.

ETF flows showed a familiar split. Bitcoin funds saw $58.5 million in inflows while Ether products recorded $9.9 million in outflows, continuing a trend of capital rotating toward BTC while ETH faces steady, moderate withdrawals.

Such a pattern has persisted for several weeks, reinforcing the view that institutional flows remain more comfortable adding bitcoin exposure during periods of macro uncertainty.

Macro developments continued to shape risk sentiment. U.S. President Donald Trump signaled tighter control over the Federal Reserve through key personnel decisions, saying he plans to announce his Fed Chair nominee early next year.

He has repeatedly suggested that Kevin Hassett is his preferred choice — a candidate widely viewed as more dovish and supportive of lower rates.

Markets have begun to price in the possibility of a more accommodative framework in 2025, though that outlook clashes with inflation still above target and a labor market that has not fully cooled.

Background sentiment received a lift from 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 they may allocate 1%–4% of portfolios to digital assets.

Broader market cap 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.