Major Cryptocurrencies Climb as Bitcoin Breaks Above $93K; Analysts Warn of "False Breakout"

Major cryptocurrencies advanced on Thursday, with tokens such as Cardano's ADA and Ether (ETH) rising as much as 5% as Bitcoin briefly climbed above $93,000. Analysts cautioned, however, that the move could be a short-lived "false breakout" in a still volatile market.

Bitcoin's push above $93,000 marked a notable recovery attempt, but the rally quickly lost momentum, leaving traders to watch whether the asset can hold support in the $90,000–$91,000 range.

Cardano’s ADA gained 5% after the network’s first major governance vote approved a 70 million ADA proposal aimed at boosting on-chain activity. Ether rose 4% following the successful activation of the Fusaka upgrade, designed to help the network handle larger transaction batches from layer-2 solutions.

"On December 3, the crypto market saw broad gains as BTC briefly broke above $93,000 before swiftly giving back its advance—a structure that resembles a potential 'fake breakout,'" analysts from Bitunix noted. "The short-term setup has shifted into a choppy pullback, with markets watching whether BTC can stabilize within the $90,000–$91,000 support zone."

ETF flow data revealed a continued divergence between Bitcoin and Ether products. Bitcoin ETFs attracted $58.5 million in inflows, while Ether funds saw $9.9 million in outflows, extending a multi-week trend of capital rotating toward Bitcoin amid uncertain market conditions.

Macro developments also influenced sentiment. U.S. President Donald Trump indicated he plans to announce his nominee for Federal Reserve Chair early next year, with former advisor Kevin Hassett widely seen as his preferred choice—a move that could signal a more dovish monetary policy direction in 2025.

Institutional adoption continued to lend support. Vanguard recently opened access to cryptocurrency ETF trading for its clients, reversing its long-held stance against the asset class. Separately, Bank of America suggested that institutional investors could allocate 1%–4% of their portfolios to digital assets.

The total cryptocurrency market capitalization has risen to $3.15 trillion, forming a higher local peak despite remaining below the $3.38 trillion resistance level. While caution persists, the market appears to be attempting to establish a new uptrend following the late-November correction.