Bitcoin has been climbing over the past week after three volatile weeks in November. Selling pressure eased, and traders are holding their positions as volatility cools.
The total crypto market cap jumped over 8.7%, pushing back above $3 trillion. The Crypto Fear and Greed Index rose seven points to 25, signaling cautious optimism among traders. Mid-cap altcoins outperformed, with many seeing strong double-digit gains.
The rally was driven by consistent dip buying and improving macro sentiment. Bitcoin reclaimed key support areas and the $90,000 mark early in the week, giving traders more confidence. Short sellers faced pressure, which added extra fuel to the recovery.
Stocks also performed strongly. The Dow gained over 1,750 points, and the Nasdaq 100 rose more than 1,200 points. Analysts are bullish on equities, citing AI growth and expectations of a Federal Reserve rate cut in December. Strong corporate earnings further supported the positive sentiment.
This optimism spilled over into crypto. Futures open interest climbed from $120 billion to over $134 billion, showing more capital moving back into the market.
Several crypto-specific catalysts are also helping. New altcoin ETFs launched recently, with more expected in December. Historically, the holiday season is a strong period for crypto, boosting hopes that Bitcoin could push toward $100,000 soon.
Traders are leaning long, with Bitcoin’s long-short ratio at 1.72, signaling bullish sentiment. A falling dollar, rising open interest, and improving market confidence suggest December could be a stronger month for crypto than earlier in November.
