The market cap has pushed back above $1.86 trillion as the rebound gains strength following several volatile sessions.
A major driver of the move came from the derivatives market. According to data from Coinglass, more than $243 million in Bitcoin positions were liquidated, with shorts taking the overwhelming hit — roughly $226 million compared to $16 million in long liquidations.
This imbalance created a forceful short squeeze, accelerating Bitcoin’s climb as over-leveraged bearish traders were forced out of their positions. Combined with rising spot buy-side volume, the liquidation spike helped turn a cautious market into an aggressive rebound.
Technical Picture
Bitcoin’s rebound is also showing momentum on the technical side. The daily RSI has climbed from oversold territory back toward the mid-40s, signaling that selling pressure has eased and buyers are gradually regaining control.
The MACD histogram has flipped upward as well, with the MACD line beginning to curl above the signal line — a classic early reversal structure that often appears before stronger trend acceleration. These indicators suggest that the recent bounce may have deeper support behind it rather than being a temporary relief move.
Liquidity Returns as the Fed Brings Quantitative Tightening to an End
One of the biggest catalysts behind Bitcoin’s latest surge is the Federal Reserve’s decision to end quantitative tightening, a program that has removed roughly $2.4 trillion from the financial system since mid-2022. With liquidity contraction now halted, assets that thrive on abundant capital are beginning to react.
Analysts describe the timing as especially noteworthy. The Fed’s shift arrived immediately after a sharp crypto pullback, replicating a pattern seen during previous cycles where markets turned up well before investors realized conditions had changed. Fundstrat’s Tom Lee has highlighted that the last time QT ended, major risk assets rallied within weeks. Based on that historical blueprint, he believes Bitcoin has room to strengthen into early 2026, with the potential to set a new all-time high by late January.
Vanguard’s Policy Pivot Signals a Cultural Shift in Traditional Finance
Institutional sentiment is shifting as dramatically as the macro backdrop. Vanguard, famous for avoiding anything related to cryptocurrencies, has unexpectedly reversed course. Beginning December 2, the company will allow trading of crypto-focused ETFs and mutual funds tied to assets like Bitcoin, Ethereum, XRP, and Solana.
This is not merely a product update; it represents a cultural and strategic realignment inside one of America’s most conservative investment giants. With more than 50 million brokerage clients, Vanguard’s acceptance of regulated crypto exposure introduces a wave of new potential participants. Analysts say this move will likely build gradually but marks a psychological milestone for the digital asset sector.
Bank of America Elevates Crypto From Side Option to Strategic Allocation
Vanguard’s shift coincides with an equally significant change at Bank of America. The bank is now advising clients that crypto exposure is not an optional curiosity but a legitimate element of a diversified portfolio. According to Chris Hyzy, CIO at BofA Private Bank, the institution is preparing allocation ranges tailored to different investor risk profiles.
This represents a clear departure from the bank’s previous stance. Conservative clients may receive lower recommendations, while more aggressive investors could see higher suggested exposure. The broader message is unmistakable: the notion that crypto should be excluded altogether has been formally retired inside one of the largest financial institutions in the United States.
Multiple Forces Combine Behind Bitcoin’s Acceleration
Bitcoin’s recent strength reflects a convergence of forces rarely seen at the same time. Liquidity is improving, institutional resistance is fading, and traditional finance is signaling a new level of acceptance. The market is also absorbing a substantial short squeeze, pushing prices higher as bearish positions unwind.
Additionally, Lookonchain reported that one major trader, known as 0x4321, capitulated on a large Bitcoin short position, closing it for a $3.2 million loss. At the same time, another trader, 0xfB66, continues to hold a sizable long position that is now sitting on more than $2.5 million in unrealized profit.
The long-vs-short battle has its winner.
0x4321 has surrendered — closing his $BTC short for a $3.2M loss.
Meanwhile, 0xfB66 is still holding his $BTC long, now sitting on over $2.5M in unrealized profit.https://t.co/Retrri2wOf https://t.co/gZxPwhogeY
— Lookonchain (@lookonchain) December 3, 2025
The contrast between forced short capitulation and profitable long conviction reflects the broader shift in momentum that helped Bitcoin accelerate higher.
What makes this moment unique is not any single catalyst but the fact that they are all happening simultaneously. A more supportive macro environment, renewed retail interest, and the endorsement of two major financial giants have created a backdrop that strongly favors upward momentum. If these conditions persist, traders anticipate a firmer December and potentially a powerful entry into 2026.