Bitcoin bounced sharply on Dec 2, vaulting back above US$90,000 after a punishing selloff that wiped out nearly US$1 billion in leveraged positions and rattled Wall Street.
Bloomberg reported that the rebound, as much as 6.8% to US$92,323, offered temporary relief but did little to dispel broader jitters across the digital-asset space.
Ether surged more than 8% to reclaim the US$3,000 mark, while altcoins including Cardano, Solana and Chainlink jumped over 10% amid a brief rush back into riskier tokens.
Traders pointed to a handful of positive catalysts: SEC Chair Paul Atkins signalled upcoming details on an “innovation exemption” for crypto firms, and Vanguard Group’s decision of allowing crypto-heavy ETFs and mutual funds on its platform, a notable shift from its historically cautious stance.
The bounce followed Dec 1’s plunge, sparked by concerns that Strategy Inc (formerly MicroStrategy) might sell Bitcoin to meet debt obligations. The firm later reassured markets by announcing a US$1.4 billion cash reserve.
Still, signs of strain are everywhere. Bitcoin’s funding rate has flipped negative, indicating rising demand for bearish bets, while the token remains nearly 30% below its early-October record after US$19 billion in leveraged positions were flushed out.
Trump-linked digital assets have been hit even harder. Shares of American Bitcoin Corp, co-founded by Eric Trump, collapsed by up to 51% in minutes, triggering multiple trading halts. TRUMP, the official memecoin, has plunged from US$73.40 in January to about US$6, while WLFI and MELANIA tokens have also suffered steep declines.
Investor nerves remain frayed, with stablecoin balances on exchanges climbing as traders retreat to the sidelines. CoinMarketCap’s “Fear and Greed Index” held firmly in “extreme fear” territory, a stark reminder that despite Dec 2’s rally, the crypto market’s footing is still precarious.
