#数字资产生态回暖 As December begins, the cryptocurrency market shows a clear rebound trend. Bitcoin and Ethereum take turns strengthening, from Bitcoin to Ethereum, then to small- and mid-cap coins like Solana and Cardano—all of them are rising. The whole market seems to have come back to life. Behind this rally, several forces are fueling the surge. Today, let’s sort out what’s really happening.

**What’s driving the market movement?**

The few days at the beginning of December marked a turning point. Bitcoin soared from a low of $84,000, skyrocketing 9.5% in a single day to over $92,000 on the 3rd, and then pushed even higher on the 10th, breaking through $94,000 with a daily increase of over 4%. Ethereum also didn’t fall behind, rising in tandem, reaching over $3,300 by the 10th, with nearly a 7% increase in 24 hours. Coins like Solana and Cardano experienced even more outrageous gains, with double-digit increases being the norm. The most astonishing aspect of this rebound is the intensity of the bulls versus bears battle—the total short positions liquidated in the global cryptocurrency market within 24 hours soared to $387 million, a figure that vividly illustrates how volatile market sentiment has become.

**Why did it rise? There are quite a few reasons.**

On the macro level, U.S. November PPI data underperformed expectations, signaling to the market that rate cut expectations are rising. According to market estimates, the probability of the Federal Reserve cutting interest rates by 25 basis points in December has soared to 89.2%. Once the dollar begins to weaken, capital naturally flows into risk assets like cryptocurrencies. This provides fundamental support.

On the technical side, there’s also movement. On December 4th, Ethereum underwent the Fusaka upgrade, which directly reduced Layer 2 network transaction fees by 30%-50% and optimized node synchronization efficiency. This immediately energized the entire ecosystem, prompting funds to rotate into high-quality altcoins, bringing in increased demand.

Institutional funds are also increasing their positions. The BlackRock IBIT ETF’s trading volume once exceeded $1 billion in just half an hour. MicroStrategy continues to buy Bitcoin relentlessly, and the demonstration effect of such large institutions is especially strong. Retail investors follow suit, and capital flows in steadily. The convergence of these forces has generated a powerful rebound.

**What’s next? It’s hard to say; there are too many variables.**

From the technical charts, Bitcoin has not yet stabilized above the 200-day moving average, and Ethereum is still under the resistance of the 50-day exponential moving average. The tug-of-war between bulls and bears remains fierce, with no one holding absolute dominance. The Federal Reserve’s interest rate decision on December 10th is a key point—its outcome will directly influence the subsequent trend.

If the Fed adopts a dovish stance and clearly signals rate cuts, Bitcoin may push further, with targets possibly in the $100,000–$105,000 range. But if the tone shifts to hawkishness, prices could retreat, testing support levels around $88,000–$90,000 again. Considering the high volatility this year and the tightening liquidity expected at year’s end, it’s likely to be a period of sideways consolidation in the short term, making extreme bullish or bearish moves unlikely.