Bitcoin briefly returned to $92,000 and Ethereum reclaimed the $3,000 level on December 3, recovering losses from the December 1 sell-off, BlockBeats reports. Vanguard, the world's second-largest asset manager, began allowing its 8 million self-directed brokerage clients to trade BlackRock's spot Bitcoin ETF, marking the firm's first crypto offering. Bank of America recommended interested investors allocate 1%-4% to digital assets. Trump strongly hinted at a press conference that Hassett would succeed Fed Chair Powell, criticizing Powell's interest rate policy and fueling market expectations for crypto-friendly dovish Fed leadership. The Federal Reserve officially ended quantitative tightening on December 2, with liquidity easing expectations gradually materializing despite some views suggesting effects may appear in early 2025.

A whale address (0x5D2) closed approximately $30.17 million in BTC short positions over six hours on December 3 as Bitcoin surged past $92,000, realizing $3.86 million in profits while retaining $17.6 million in unrealized gains, Coinbob data show. The address currently holds a short position of approximately $80.97 million with an average entry price of $111,500 and a liquidation price that rose from $94,800 to $101,000, ranking as the top BTC short on Hyperliquid. The whale withdrew over $34.09 million in account collateral and transferred $40 million to a Binance wallet, adding $3 million in margin and closing portions of the short position to adjust the average price higher.

Vanguard, the world's second-largest asset manager, now allows investors to trade BlackRock's spot Bitcoin ETF on its platform, Cardiff founder William Stern said on Dec. 3. Bank of America's Merrill and Private Bank Chief Investment Officer Chris Hyzy stated a 1% to 4% digital asset allocation may be appropriate for investors with high thematic innovation interest and volatility tolerance. Bitcoin surged past $92,000 on Tuesday following the announcement, marking Vanguard's shift from long-standing crypto critic to ETF distributor.

A trader who had achieved nine consecutive profitable trades closed a 40x leveraged short position of 500 BTC at a loss exceeding $1.78 million on Dec. 2, Lookonchain data show. The trader had accumulated $2.12 million in profits across the nine winning trades. The single short position loss of over $1.78 million nearly wiped out the majority of previous gains.

Bitcoin climbed back above $90,000 to trade at $90,045 on Dec. 2, marking a 4.86% increase over 24 hours, HTX market data show. The recovery follows recent price movements in the cryptocurrency market.

Bitcoin rebounded last week, aligning with expectations of a local bottom, Bitfinex said in a Dec. 2 report. The adjusted Spent Output Profit Ratio dropped below 1 for only the third time since early 2024, matching dynamics at prior cyclical lows in Aug. 2024 and April 2025, while Entity-Adjusted Realized Loss spiked to $403.4 million daily, exceeding levels at previous major lows. BTC futures open interest declined to $59.17 billion from a peak of $94.12 billion, with the contraction occurring alongside spot price gains, indicating short covering rather than new speculative positioning. The report noted extreme deleveraging, short-term holder capitulation and seller exhaustion have established foundations for a stabilization phase, with reduced fragility potentially setting a base for sustained recovery in Q4.

Bank of America has authorized its wealth management advisors to recommend crypto allocations of 1%–4% for client portfolios starting January, CoinDesk reports. The Bank of America/Merrill Lynch teams will initially focus on four spot bitcoin ETFs: BlackRock's IBIT, Fidelity's FBTC, Bitwise's BITB, and Grayscale's BTC. This move positions the institution among Wall Street firms opening access to bitcoin investment products for wealth clients.

Bitcoin rose past $88,000 to reach $88,142 on Dec. 2, up 2.45% over 24 hours, HTX market data show. The move marks a notable uptick in trading activity for the leading cryptocurrency.