Daily Market Update: Stock and Crypto Market Rally Stalls as Markets Await Fed Decision

TLDR

• Bitcoin briefly topped $93,000 on Thursday but analysts warn the move could be a fake breakout with key support at $90,000-$91,000
• Cardano’s ADA rose 5% after a governance vote passed a 70 million ADA proposal while Ethereum gained 4% following its Fusaka upgrade
• Bitcoin ETFs saw $58.5 million in inflows while Ethereum ETFs recorded $9.9 million in outflows
• Markets are pricing in an 89% probability of a Federal Reserve rate cut at next week’s meeting
• Total crypto market cap reached $3.15 trillion while stock futures showed mixed results Thursday morning

Bitcoin moved above $93,000 on Thursday but traders are questioning whether the rally will last. The price briefly crossed the threshold before pulling back. Analysts at Bitunix called the move a potential fake breakout.

The focus now centers on whether Bitcoin can hold support between $90,000 and $91,000. This range emerged as critical after sharp liquidations earlier in the week. Resistance has formed at $93,200 according to trading desk analysis.

Cardano’s ADA token gained 5% following a governance milestone. The network approved a 70 million ADA proposal designed to boost on-chain activity. This marked the first major vote using Cardano’s governance system.

Ethereum rose 4% as its Fusaka upgrade went live. The update improves how the network processes large transaction batches from layer-2 networks. These scaling solutions settle their transactions on Ethereum’s main chain.

Investment flows revealed a clear pattern. Bitcoin ETFs attracted $58.5 million in new money while Ethereum ETFs lost $9.9 million. This trend has continued for several weeks as institutions favor Bitcoin during uncertain periods.

The total cryptocurrency market capitalization reached $3.15 trillion. This represents a higher local peak compared to recent weeks. The market remains below its previous high of $3.38 trillion from late November.

Vanguard opened crypto ETF trading to its clients on December 2. The investment giant had resisted offering these products for years. Bank of America told institutional clients they could allocate 1% to 4% of portfolios to digital assets.

President Trump said he will announce his Federal Reserve Chair nominee early next year. He has indicated Kevin Hassett as his preferred candidate. Markets view Hassett as supportive of lower interest rates.

Stock futures showed mixed results Thursday morning. Dow Jones futures rose 0.1% while S&P 500 futures stayed flat. Nasdaq 100 futures dipped 0.1% lower.

The previous trading session saw the Dow jump 400 points or 0.9%. The S&P 500 and Nasdaq Composite posted smaller gains. ADP private payroll data showed weaker November hiring than expected.

Futures markets now assign an 89% probability to a rate cut at next week’s Federal Reserve meeting. The CME FedWatch tool tracks these expectations. Initial jobless claims data releases Thursday to provide more labor market information.

Salesforce stock jumped 5% in after-hours trading following its earnings report. The company issued revenue guidance above analyst estimates. Five Below added 2% after reporting strong quarterly results.

Snowflake dropped over 7% despite announcing a partnership with Anthropic. The AI data cloud company reported earnings losses. HP, Dollar General, and DocuSign release earnings results Thursday.

Inflation remains above the Federal Reserve’s target while the labor market has not fully cooled. These factors complicate the outlook for monetary policy in 2025. Markets are attempting to price in a more accommodative framework from the central bank.

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