The crypto market caught a nice tailwind Wednesday, riding alongside stocks as disappointing employment data gave investors another reason to believe the Federal Reserve will actually follow through with a rate cut next week. Nothing gets traders more excited than the prospect of cheaper money.

The Recovery Continues to Build

Bitcoin pushed past $94,000 Wednesday, reclaiming levels it hasn't seen in more than two weeks. It's been a steady climb back from the recent slump, and momentum seems to be gathering steam.

Ethereum had an even better day, jumping to prices last seen three weeks ago. Trading volume surged nearly 20% over the last 24 hours, suggesting renewed interest from both retail and institutional players. XRP and Dogecoin continued their upward trajectories as well.

The enthusiasm spilled over into crypto-adjacent stocks. Strategy Inc. (MSTR) closed up 3.89% during regular trading, while Bitmine Immersion Technologies Inc. (BMNR) gained 5.48%. When Bitcoin moves, the entire ecosystem tends to follow.

According to Coinglass data, cryptocurrency liquidations hit $400 million over the last 24 hours. Here's the interesting part: short liquidations made up 75% of that total. Translation? A lot of traders betting against crypto got squeezed as prices rose.

Bitcoin's open interest increased 0.95% in the last 24 hours, while Ethereum saw a more substantial 7.90% jump in funds locked in derivatives. That's a sign traders are positioning for bigger moves ahead.

Despite the gains, "Fear" sentiment still persisted in the market according to the Crypto Fear & Greed Index. Apparently, even when prices are climbing, crypto investors remain cautious.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $3.17 trillion, up 2.6% from the previous day.

Stocks Rally as Rate Cut Odds Spike

Equities extended their gains Wednesday on the back of increasingly confident rate cut expectations. The Dow Jones Industrial Average climbed 408.44 points, or 0.86%, finishing at 47,882.90. The S&P 500 rallied 0.30% to close at 6,849.72, while the tech-heavy Nasdaq Composite edged up 0.17% to 23,454.09.

The catalyst? Private payrolls dropped by 32,000 in November, a sharp miss compared to economists' expectations for a 5,000 increase. When you're expecting positive job growth and instead get a significant decline, that's the kind of data that moves markets.

The report signaled fresh cracks in the labor market, which naturally strengthened the case for the Federal Reserve to cut rates at next week's policy meeting. According to the CME FedWatch tool, traders are now pricing in an 89% probability of a rate cut. That's about as close to a sure thing as markets get.

Can Bitcoin Hit Six Figures This Month?

Prominent cryptocurrency analyst and trader Michaël van de Poppe is feeling bullish about December's prospects. He noted the strong start to the month and expects the momentum to continue.

"I do think that we'll see a test at $100,000 for Bitcoin," van de Poppe said. "I also think that we're going to witness more strength on ETH vs. BTC, which means that altcoins can start rising from the ashes."

That's an interesting call. If Ethereum starts outperforming Bitcoin, it typically signals that investors are feeling adventurous enough to move down the risk curve into smaller altcoins. It's how crypto bull markets tend to broaden out.

On-chain analytics firm CryptoQuant added fuel to the bullish case by highlighting the continued decline of Bitcoin reserves on Binance. When coins leave exchanges, it generally means people are moving them into cold storage rather than preparing to sell.

"Historically, such conditions have supported medium- to long-term price appreciation," CryptoQuant noted. "The current trend suggests that Binance's reserve decline is a normal re-accumulation phase within a broader bullish environment."

In other words, the smart money might be quietly accumulating while everyone else is still nervous. Whether Bitcoin actually reaches $100,000 this month remains to be seen, but the setup is certainly getting more interesting.