Bitcoin Surges Past $90K, Triggers $157M Short Liquidations

According to data from CoinGecko, Bitcoin surged past $90,000 for the first time in a week, posting a 6.7% gain in a single day. This marked its most significant daily advance since a 9.52% jump on March 2, 2025, as recorded by Investing.com. The rally was not confined to Bitcoin; Ethereum and XRP also posted substantial gains. Ethereum, on the eve of its Fusaka network upgrade, climbed nearly 10% and briefly traded above $3,000 for the first time since the previous Sunday. Meanwhile, XRP jumped 7.3% to trade at $2.14, indicating a broad-based recovery across major digital assets.

The sharp price movement had a dramatic impact on derivatives markets. Data from Coinglass reveals that the rally triggered the liquidation of $157 million worth of Bitcoin short contracts. Across the entire crypto derivatives complex, total liquidations exceeded $312 million, underscoring the force of the upward move. Furthermore, daily trading volume more than doubled to climb above $92 billion, according to CoinGecko, signaling a significant return of trader interest and capital to the market.

The resurgence in spot prices was mirrored by a notable shift in fund flows for crypto exchange-traded funds (ETFs). A report from digital asset manager CoinShares indicated that Bitcoin, Ethereum, and XRP ETFs collectively attracted over $1 billion in net inflows last week, rebounding from previous outflows. This trend highlights the critical role institutional investment vehicles play in price discovery and market liquidity.

However, the picture was mixed at the start of the new week. Data from Farside Investors shows that while Bitcoin ETFs remained in positive territory with $8.5 million in net inflows on Monday, Ethereum ETFs experienced a slight pullback, with investors withdrawing $79 million. Solana (SOL) funds also saw $13.5 million worth of shares redeemed. This divergence suggests that while confidence in Bitcoin is strengthening, investor appetite for other major cryptocurrencies may be more tentative as the market awaits broader macroeconomic cues.

Despite the bullish price action, analysts caution that crypto markets remain in a fragile state. Much of Bitcoin’s year-end performance is seen as dependent on the outcome of the Federal Open Market Committee’s (FOMC) December 9-10 meeting. The U.S. central bank recently ended its quantitative tightening program, and analysts at the Wintermute trading desk noted in a commentary shared with Decrypt that the Fed injected $13.5 billion via overnight repurchase agreements to ease year-end liquidity strains. They characterized this as “the second-largest since COVID” but emphasized it is “a routine tool for short-term stabilization instead of a broader policy shift.”

Market expectations for a policy shift are high. On the Myriad prediction market, owned by Decrypt’s parent company Dastan, users now assign a 91% probability that the FOMC will approve another 25 basis point interest rate cut at its upcoming meeting. Historically, crypto asset prices have been sensitive to shifts in monetary policy and liquidity conditions. A rate cut could be interpreted as a dovish signal, potentially supporting risk assets like cryptocurrencies, whereas a decision to hold rates steady could introduce volatility. As trading volume surges and ETF flows fluctuate, the Fed’s decision next week stands as the most significant near-term catalyst for the digital asset market.