Bitcoin (BTC) jumped 11% overnight, rebounding from December 1 lows of $83,822.76 to breach $93,000. The surge was driven by a seemingly quiet shift in Federal Reserve policy: the formal cessation of quantitative tightening (QT) on December 1, paired with the New York Fed conducting $25 billion in morning repo operations and $13.5 billion overnight—its largest injections since 2020.
This liquidity pump eased funding stress, reducing borrowing costs and expanding dollar supply, which typically bolsters high-beta assets. Weak U.S. manufacturing data—ISM PMI at 48.2, marking nine months of contraction—further shifted FOMC rate-cut probabilities into the high-80% range for the December 10 meeting.
Structural demand catalysts compounded the rally. Vanguard opened its $9 trillion platform to third-party crypto ETFs tied to BTC, ETH, XRP, and SOL for the first time, creating immediate buying pressure. BlackRock’s IBIT product recorded $1 billion in volume within the first 30 minutes of trading.
After a challenging November—marked by the worst monthly performance in four years and over $4.3 billion in ETF outflows—Bitcoin’s recovery reflects a confluence of macro relief, structural tailwinds, and short-covering dynamics. The “Vanguard effect” complemented Fed-driven flows, setting the stage for renewed momentum ahead of a pivotal FOMC meeting.
Despite ongoing downtrend fundamentals—Bitcoin remains over 30% below its October peak near $126,000—this technical breakout underscores liquidity’s power. As rate-cut expectations mount, traders and investors eye the $98,000 and $100,000 thresholds, with the 50-week SMA at $102,000 serving as a critical resistance level.
The overnight move highlights Bitcoin’s evolving market structure: macro liquidity, ETF accessibility, and short-covering converge to drive pronounced volatility and directional bias, reinforcing BTC’s role as a high-beta asset sensitive to monetary plumbing shifts.
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