Bitcoin Tops $93K, Driving Gains in ADA, ETH, and XRP; Analysts Warn of Potential ‘Fakeout’

Bitcoin and the broader crypto market are navigating a choppy pullback as traders watch whether BTC can hold the $90,000–$91,000 support zone. “The short-term setup has shifted into a choppy pullback,” one trader said, highlighting market uncertainty.

On Thursday, major cryptocurrencies posted gains of up to 5% while Bitcoin hovered above $93,000. Some analysts warned the rally could be a “fake-out,” as volatility remains elevated.

Cardano’s ADA rose 5% following approval of a 70 million ADA proposal aimed at boosting on-chain activity in its first governance vote. Ether climbed 4% after the Fusaka upgrade went live, enhancing Ethereum’s ability to handle growing transaction volumes from layer-2 networks.

Market watchers remain focused on whether Bitcoin can stabilize around $90,000–$91,000. After a sharp liquidation cycle earlier in the week, broader market positioning is fragile, though efforts to form higher lows continue following late-November’s drawdown. Bitunix analysts noted that $93,200 has emerged as the next resistance level.

ETF flows highlighted a continued rotation toward Bitcoin, with $58.5 million flowing into BTC funds, while Ether products saw $9.9 million in outflows. The trend underscores institutional preference for Bitcoin amid macroeconomic uncertainty.

Macro developments are also influencing sentiment. President Trump signaled tighter oversight of the Federal Reserve and may announce his Fed Chair nominee early next year, with Kevin Hassett viewed as a dovish candidate. Markets are starting to price in a more accommodative policy framework in 2025 despite persistent inflation and a strong labor market.

Institutional moves have bolstered optimism. Vanguard recently opened crypto ETF trading to clients, and Bank of America advised institutional clients to consider allocating 1%–4% of portfolios to digital assets.

The broader crypto market capitalization now sits at $3.15 trillion, forming a higher local peak and suggesting early signs of trend formation, though caution persists below the $3.38 trillion threshold.