Introduction Good morning and welcome to BitMorpho's Daily News & Fundamentals report for Wednesday, December 3, 2025. After a choppy start to the week that saw Bitcoin experience a significant flush of leverage, the crypto market has staged a robust rebound, with BTC decisively reclaiming the $93,000 level in early trading today. This aggressive buying pressure is being fueled by palpable shifts in the broader macro environment, specifically surrounding Federal Reserve policy expectations and easing liquidity constraints. The dominant story driving sentiment is the increasingly strong consensus that the Fed will implement a 25-basis-point rate cut at their upcoming meeting, with markets now pricing in an 87% probability for easing. Major institutions like Bank of America have joined the chorus forecasting this move, citing softer labor data and dovish FOMC commentary. The easing of quantitative tightening (QT) on Monday is also cited by analysts as a key factor in the market's immediate reversal. Institutionally, the positive momentum is being buttressed by major endorsements; reports indicate that Bank of America is publicly advising clients to allocate up to 4% of their portfolios to Bitcoin and crypto. On-chain, Bitcoin exchange reserves have dropped to multiyear lows, indicating tightening supply that supports the current buying wave. However, the macro picture remains complex. Global economic outlooks suggest a general slowdown, with OECD projecting global GDP growth to cool further into 2026, while US growth is expected to decelerate due to tariff impacts and policy uncertainty. While US economic data, including Import/Export Prices and Industrial Production figures, is due out today, much of the decision-making data for the FOMC meeting is already in the rearview mirror, keeping the focus squarely on the impending policy pivot. This delicate balance crypto fundamentals strengthening against a backdrop of global economic deceleration and tariff headwinds will define the market's path forward. News Analysis Bitcoin Reclaims $93K on Dovish Fed Hopes and Supply Squeeze The cryptocurrency market is exhibiting strong upward momentum today, with Bitcoin decisively recovering the $93,000 level in early trading. This rebound follows a period of leveraged selling early in the week and is being fundamentally underpinned by escalating expectations of a dovish pivot from the Federal Reserve and tightening Bitcoin supply dynamics. Macro Catalysts Drive Price Action The primary tailwind for Bitcoin is the market’s increasingly firm conviction that the Federal Reserve will implement a 25-basis-point rate cut at its next meeting, currently priced with an 87% probability. This dovish shift has been amplified by the Fed's decision to ease quantitative tightening (QT) on Monday, injecting necessary liquidity back into the system and reversing the recent market drain. Furthermore, major financial institutions are now publicly endorsing digital assets. Notably, Bank of America is reportedly advising suitable clients to allocate between 1% and 4% of their portfolios to Bitcoin and crypto, favoring regulated spot Bitcoin ETFs for this exposure. This institutional endorsement signals a significant step toward mainstream acceptance. On-Chain Data Points to Supply Shock Potential Underpinning the renewed buying pressure is a notable contraction in readily available Bitcoin supply. On-chain metrics confirm that Bitcoin exchange reserves have dropped to multiyear lows, around 2.19 million BTC at the time of the report. This reduction in liquid supply, where assets are moving to cold storage or being locked up in new investment vehicles, suggests a structural tightening that can amplify upward price moves should demand continue to climb. Analysts suggest this move away from exchanges is structural, possibly in preparation for increased utility or simply long-term holding, rather than panic selling. While this scarcity is a long-term bullish signal, some analysts caution that price action will ultimately depend on whether demand, driven by factors like ETF inflows or macro easing, can decisively overcome current technical resistance levels. Today’s Economic Focus and Global Headwinds While the market focuses heavily on the Fed's imminent policy pivot, today's scheduled economic data releases serve as a final check on the current state of the US economy. Key data points released this morning included US Import/Export Prices and Industrial Production figures for September. The Import/Export Price Index data, released at 8:30 AM ET, showed US import prices recorded no change in September, while export prices were also flat, following smaller monthly advances in August. Industrial Production data followed at 9:15 AM ET. These reports are considered secondary today, as the market appears to have already digested the most critical decision-making data regarding the upcoming rate cut. Despite the positive risk-asset environment, the broader global backdrop remains complex, with the OECD projecting a general slowdown into 2026, further complicated by ongoing tariff impacts and policy uncertainty that could affect US growth and corporate planning into the new year. [cite: CONTEXT] Community Sentiment and Regulatory Outlook Community sentiment appears to have swiftly turned bullish following the liquidity injection and price recovery above $93,000. The aggressive buying pressure suggests traders are rapidly positioning for the expected Fed easing cycle. On the regulatory and ecosystem front, the key development remains institutional adoption, as evidenced by Bank of America's formal inclusion of Bitcoin ETFs into its core advisory framework. There are no major, immediate regulatory announcements dominating the headlines today, keeping the focus firmly on the macroeconomic tailwinds that are currently overpowering local deceleration concerns. Outlook Conclusion: A Strong Bullish Undercurrent Propels Bitcoin Past $93K Today's trading session solidifies a decidedly positive fundamental outlook for Bitcoin, as the digital asset decisively reclaimed the critical $93,000 threshold. The catalyst appears threefold: strengthening expectations for a dovish Federal Reserve, evidenced by the high probability of a 25-basis-point rate cut, which is injecting favorable liquidity; growing institutional validation, highlighted by Bank of America's advisory for client allocation to regulated spot ETFs; and perhaps most compellingly, a structural supply squeeze. The decline in Bitcoin exchange reserves to multiyear lows suggests that readily available liquid supply is tightening, setting the stage for potentially sharp upward price movements if current demand is sustained. For investors watching the next 24-48 hours, the key focus remains on whether the macro narrative holds. Specifically, monitoring any subsequent commentary from Fed officials regarding future policy and observing if Bitcoin can establish a firm foothold above the $93,000 resistance level will be crucial indicators of momentum continuation. The on-chain scarcity provides a strong underlying buffer, but market sentiment surrounding immediate interest rate expectations will likely dictate short-term volatility. *Disclaimer:* *This report is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.*