The U.S. crypto market began the day with a sluggish pace but quickly shifted gears as Bitcoin (BTC) surged back above the $94,000 mark.
Earlier in the session, Bitcoin lingered just over $90,000 before rallying sharply past $94,000 shortly after 16:00 UTC. This rapid increase added more than $3,000 to its value within an hour and represented a 4% gain over the last 24 hours.
Ethereum’s native token Ether (ETH) also experienced notable growth, climbing by 5% during this timeframe. Meanwhile, other cryptocurrencies like Cardano (ADA) and Chainlink (LINK) saw even stronger upward momentum.
This surge coincided with silver prices reaching new all-time highs above $60 per ounce.
While traditional stock markets remained largely unchanged, crypto-related equities mirrored Bitcoin’s upward trend. Companies such as Galaxy Digital (GLXY) and CleanSpark (CLSK), which focus on digital assets and bitcoin mining respectively, posted gains exceeding 10%. Other firms including Coinbase (COIN), MicroStrategy (MSTR), and BitMine Resources Inc. (BMNR) rose between 4% to 6%.
No single event clearly triggered this swift price jump; however, Bitcoin had been predominantly declining during U.S. market openings for several weeks prior. The recent shift might indicate that sellers are losing momentum.
Vetle Lunde from K33 Research highlighted that investors have adopted “highly defensive” stances in crypto derivatives markets due to fears of further declines—this crowded positioning may have contributed to the sharp rebound observed today.
Additional evidence of bear market capitulation surfaced when Standard Chartered analyst Geoff Kendrick downgraded his long-term bitcoin price forecasts on Tuesday.
The Coinbase bitcoin premium—which measures BTC price differences between U.S.-based exchange Coinbase and offshore Binance—has turned positive recently. This suggests renewed buying interest from American investors is returning to the scene.
A closer look at market dynamics reveals that daily BTC price increases outpaced rises in open interest within derivatives trading platforms; implying spot demand rather than leveraged positions is driving this rally forward.
The Federal Reserve is anticipated to reduce benchmark interest rates by 25 basis points following its two-day meeting ending Wednesday. Although expected by most participants already, easing monetary policy combined with steady economic performance could enhance risk-taking behavior across financial markets moving ahead.
UPDATE — December 9th at 16:55 UTC: Added insights comparing price appreciation against derivative open interest growth.