V-Shape Bounce, Rare Bitcoin Signal, $13 Billion Fed Shock: What’s Coming?
The crypto market has entered December with a sharp momentum shift, as altcoins rebound in a clean V-shape pattern, Bitcoin flashes a historically rare bullish signal, and the Federal Reserve injects $13.5 billion in liquidity, the second-largest such operation since the COVID-19 pandemic.
Traders now want to know whether this cluster of catalysts marks the start of a full market reversal.
Altcoins Erase Losses in V-Shape Recovery As Bitcoin Flashes a Rare Parabolic SignalAltcoins are driving the December turnaround after one of the strongest 24-hour recoveries in months.
“Alts just printed a sharp V-shape recovery, erasing all the downside. In 24 hours, they’ve surged into the Warming Up quadrant, where rallies and breakouts ignite. But there’s one condition: BTC must stabilize and reclaim $93,500,” cautioned Altcoin Vector in a post.
The V-shape pattern historically appears ahead of broader trend reversals, but only if Bitcoin confirms the macro direction.
Several analysts believe a confirmation signal may already be forming. According to Gert van Lagen, Bitcoin’s monthly Bollinger Band Width has dipped below 100, a rare technical event that preceded every major Bitcoin parabolic leg in the past decade.
$BTC [1M] – Bollinger Band Width just dipped below 100 — flashing a rare green signal.
Historically, every time this triggers, Bitcoin follows with a direct parabolic leg up.
No red signal flashed in the previous months… pic.twitter.com/PoAM9hgHfV
If history repeats itself, Bitcoin may be preparing for its next major expansion phase, provided it can retake the $93,500 resistance level.
Bitcoin (BTC) Price Performance. Source: TradingView
Institutions Step Back In: Vanguard, BoA, Tether
Social data from Santiment indicates a sharp increase in institutionally driven narratives across cryptocurrency platforms. Vanguard, managing $11 trillion, reversed its anti-crypto stance and opened Bitcoin, Ethereum, XRP, and Solana ETF trading to more than 50 million clients.
Bank of America followed by allowing advisers to recommend a 1%–4% crypto allocation starting January 2026.
“… [these developments] signal growing institutional acceptance and mainstream adoption of cryptocurrency,” Santiment noted.
Strong stablecoin inflows, including Tether’s $1 billion mint on Tron, and anticipation of Ethereum’s Fusaka upgrade are further supporting the early December rebound.
Tether(@Tether_to) just minted 1B $USDT!#Tether and #Circle have minted $20B in stablecoins after the 1011 market crash.https://t.co/Ptsy2BsPoEhttps://t.co/bJ4jMdPZxo pic.twitter.com/IxbczCtNa8
— Lookonchain (@lookonchain) December 2, 2025 $13.5 Billion Fed Liquidity Shock Reprices MarketsThe most unexpected catalyst emerged on December 1, when the Federal Reserve injected $13.5 billion via an overnight repo. The move, which signaled tightening pressure within the financial system, was one of the largest liquidity injections since the COVID-19 pandemic.
INTEL: The Federal Reserve conducted a $13.5B overnight repo operation on December 1, marking one of the largest liquidity injections since the COVID period pic.twitter.com/A3ZhJpo0u7
— Solid Intel