The previous market wrap focused on how the market was recovering despite not showing any signs on the charts. But this week, the narrative has changed, and the recovery is evident on many charts. From the total market cap crossing above the $3 trillion mark to the Fear and Greed Index emerging out of the extreme fear zone, the indicators are showing positive signs while the market is healing.
Crypto market cap crosses $3 trillion
The total market cap, which has been falling since mid-October, is once again showing signs of recovery. It fell from above $4 trillion in October to $2.8 trillion. However, just a few days ago, the market cap rose above the $3 trillion mark, a major resistance level, which catapulted it to nearly $4 trillion three months ago. It is a good start, and if history repeats, another spike to $4 trillion is possible.
Bitcoin aims $100K while ETH crosses $3K
Getting into the granular view of the total market cap, Bitcoin recovered from $85K and is now priced at $91K, while Ethereum crossed above the $3,000 level.
Although Bitcoin attempted to recover while it crashed from $124K to $85K, it could not. The uptrends were short-lived, as they were emotion-driven. Unlike these uptrends, which were short-lived, the current uptrend is measured, methodical, and consistent. Given that Bitcoin maintains this uptrend, the coin is well-positioned to reach the six-digit figure–$100K, which is the next resistance level.
Meanwhile, Ethereum is also recovering, although it looks like it is crashing inside the falling wedge; it is actually not. The coin is testing the upper trendline, and a breakout from the falling wedge is usually followed by a huge spike. As such, Ethereum will be looking to conquer the $3.5K resistance level.
However, the Fusaka upgrade, which is scheduled to happen in the near future, could kick off a huge rally, taking ETH to $7.8K, according to a crypto analyst.
Funds flow into BTC and ETH ETFs
Funds started flowing into Bitcoin and ETH ETFs after nearly three weeks of leaking. Currently, Bitcoin ETFs attracted $71.4 million while ETH ETFs saw $76.6 million in inflows. Another area that is getting better, after showing very few to no signs of recovery.
Crypto market creeps out of extreme fear
The market sentiment is also getting better, as traders have lost the extreme fear that haunted them. CMC’s Fear and Greed Index just moved out of the extreme fear zone, ending the downtrend that drenched the market in extreme fear. Now that the market is getting better, the sentiment will eventually move into the neutral zone, as traders’ appetite for risk gets better.
Altcoin Season Index exits BTC zone
The altcoin season index, which measures the performance of altcoins against bitcoin for the past 90 days, has also started a new uptrend. The ASI was at 19 and is now at 23 as it edges closer to exiting the bitcoin season territory (0-25) on its scale.
During the last bull cycle in 2021, euphoria covered the market top, while in 2025, fear is still controlling the market. It’s following the same 2021 playbook. Crypto trader Merlijn stated that it is when euphoria is at its peak that markets move. When retailers see fear and panic, smart money sees the historic behavior of the market.
What is in store?
And overall, the coming days are going to get much better for the crypto markets as more liquidity is about to be injected into the market. US President Donald Trump has planned to inject $20 trillion into the market by the end of the year.
But that’s not it. Let’s not forget about the Federal Open Market Committee meeting on December 10. According to the prediction market, there is an 85% chance of another rate cut for December. The interest rates will be slashed by 0.25% taking it to 3.75%-4%. On top of that, quantitative tightening, a period where the US government drains the flow of liquidity in the market, comes to an end shortly.
So let’s put the whole scenario together. With $20 trillion liquidity injected, lower interest rates on borrowing, and quantitative tightening ending, there will be an excess of liquidity.
With so much money flowing, traders will be tempted and will put their money at risk on assets like crypto, pushing the demand higher. In addition, there are more crypto ETFs being launched. These Exchange Traded Products will be another category that investors will be looking to invest in. With all these factors playing out, the market is going to go big. The last market wrap was all about unearthing the hidden, but this week, it’s about observing the data right in front of you. The next week will be about reaping the benefits of this week’s positive sentiment.
