Key points
More than $157 million worth of Bitcoin short positions were liquidated.
Ethereum surged nearly 10% ahead of its Fusaka upgrade and surpassed $3,000.
XRP gained over 7% and was last trading near $2.14.
Crypto ETF products added more than $1 billion in new capital this week.
Bitcoin has climbed back above $90,000 for the first time in over a week after strong buying activity returned to the market. BTC was recently priced at $90,339, showing a 6.7% gain in 24 hours based on prices on major exchanges.
Short sellers were hit hard by the price movement. Data from derivatives platforms shows that more than $157 million in Bitcoin short contracts were liquidated over the last day, while total cryptoasset liquidations exceeded $312 million. The forced closures of short positions increased buying demand, which added to the upward price movement.
Cryptocurrency trading activity has increased dramatically. Daily volume has surpassed $92 billion after earlier declines this week, indicating increased participation by market traders.
Ethereum is also up. Ahead of the upcoming Fusaka network upgrade, ETH surged nearly 10% and briefly surpassed $3,000. XRP gained over 7% and was last trading near $2.14.
Market participants are monitoring developments in US monetary policy. The Federal Open Market Committee will hold its last meeting of the year on December 9 and 10. Many expect a 25 basis point rate cut, which would reduce borrowing costs and influence how traders position themselves in digital assets. The Federal Reserve also provided $13.5 billion in overnight liquidity through repurchase operations to support year-end funding needs.
Investment funds linked to digital assets have seen renewed demand. Over the past week, Bitcoin, Ethereum, and XRP exchange-traded products recorded over $1 billion in inflows. During Monday’s session alone, Bitcoin ETFs added around $8.5 million in new capital. Ethereum and Solana products saw modest drawdowns as investors repositioned ahead of the interest rate decision.
Trading firms are closely monitoring the money flowing in and out of crypto investment products as investor decisions move toward the final days of 2025.
Also read: Bitcoin falls and investors lose appetite for cryptocurrencies