The cryptocurrency market experienced a notable rebound on December 2nd, with Bitcoin and major altcoins climbing by over 1% in the past 24 hours. This surge has seen the total market capitalization of cryptocurrencies surpass $3 trillion. The rise can be attributed to several factors, including decreasing liquidations and growing speculation around potential Federal Reserve interest rate cuts. According to data from CoinGlass, liquidations decreased by 60% on Tuesday to $328 million. Additionally, futures open interest saw a slight increase, indicating more active trading in the market. Despite this positive development, some investors remain concerned about recent liquidations, particularly following the significant events of October 10th, which saw over $20 billion wiped out from trading activity. The anticipation for potential rate cuts by the Federal Reserve has bolstered investor sentiment, with Polymarket polls indicating a near-certain chance (90%) of a 0.25% interest rate reduction at its upcoming meeting next week. This surge in market sentiment is also fueled by signs of potentially imminent quantitative easing (QE) from the Fed. The recent injection of $13.5 billion into the banking system through overnight repos, the second-largest spike since the COVID pandemic, suggests a possible need for increased liquidity in the financial system. This has triggered speculation on QE and its potential impact on the cryptocurrency market. There’s also the possibility that the recent rebound is a ‘dead cat bounce’ – a temporary surge followed by a further decline. It’s crucial to watch out for signs of a genuine bull trend or a continued fall.