The Federal Reserve ended quantitative tightening on December 1 and immediately deployed a $13.5 billion overnight repo operation. Analysts view the liquidity shift as a potential catalyst for risk assets, though a possible Bank of Japan rate hike in December could temporarily moderate gains. The move marks the first significant liquidity injection since the withdrawal phase began in June 2022.

Bloomberg Senior ETF Analyst Eric Balchunas challenged a Citi research note claiming U.S. spot Bitcoin ETF outflows directly correlate with price declines. Citi estimated each $1 billion in withdrawals corresponds to a 3.4% price drop. Balchunas argued the calculation ignores $22.5 billion in year-to-date inflows, which would imply a 77% price increase by the same logic.

Bitcoin traded above $86,000 after recovering from a brief drop below $84,000 on Tuesday. The cryptocurrency faces potential upward movement toward $93,000 resistance, while the critical $83,000 support level remains intact. Options data shows 15% of traders expect BTC to fall below $80,000 by year-end, while 21% anticipate prices exceeding $100,000.

Vanguard Group began offering cryptocurrency ETF trading on its brokerage platform on December 2, 2025, granting more than 50 million clients access to Bitcoin and Ether funds from BlackRock, Fidelity, and Grayscale. The firm, which manages approximately $11 trillion in assets, excludes memecoin, leveraged, inverse, and futures-based crypto products from its platform.

Grayscale Research forecasts bitcoin will reach new all-time highs in 2026, rejecting the traditional four-year cycle theory that anticipates extended bear markets. The firm points to institutional investment structures and favorable macroeconomic conditions as key differentiators from prior cycles. Bitcoin traded at $86,909 as of 2:20 a.m. ET Tuesday after declining 32% from its peak.

Vanguard, the world's second-largest asset manager with approximately $11 trillion in assets, will enable clients to trade third-party cryptocurrency ETFs and mutual funds beginning December 2, 2025, according to Bloomberg. The policy shift grants more than 50 million investors access to products holding Bitcoin, Ether, XRP, Solana, and other digital assets through the firm's US brokerage platform. The decision follows the appointment of Salim Ramji as chief executive this year, reversing the firm's previous stance under former CEO Tim Buckley, who stated Bitcoin ETFs did not belong in typical retirement accounts.

Several market analysts view Bitcoin's recent decline as a temporary pullback rather than a trend reversal, with multiple forecasts pointing to a potential rally in the coming weeks. Fundstrat's Tom Lee expects Bitcoin could surpass its prior peak near $125,000 as early as January, while others cite macroeconomic policy shifts as key drivers. Rising speculation over Federal Reserve leadership change and historical policy patterns add to bullish sentiment for early 2025.

Bitcoin traded around $86,000 during Asian hours following a significant cryptocurrency selloff and global bond market pressure. The largest digital asset by market capitalization remains approximately 30% below its October peak. Market participants exercised caution amid shifting monetary policy expectations in Japan and ongoing stress in credit markets.