Daily Crypto Signals: Bitcoin Dips After Testing $114K, Ethereum Prepares for Fusaka Upgrade
Bitcoin reached a daily high of $114,000 on Tuesday as futures traders returned to the market with growing confidence, pushing open interest
Quick overview
- Bitcoin reached a daily high of $114,000 as futures traders returned to the market, increasing open interest to over $32 billion.
- Ethereum is in the final testnet phase of its Fusaka upgrade, set to launch on December 3, which will introduce a per-transaction gas cap for improved efficiency.
- The US Federal Reserve is exploring a new 'payment account' model to enhance fintech and crypto companies' access to its payment system.
- Coinbase acquired crowdfunding site Echo for $375 million, signaling a shift towards community-driven investing in the crypto space.
Bitcoin BTC/USD reached a daily high of $114,000 on Tuesday as futures traders returned to the market with growing confidence, pushing open interest above $32 billion following the devastating October 10 sell-off. Meanwhile, Ethereum ETH/USD entered the final testnet phase of its Fusaka upgrade ahead of the December 3 mainnet launch, introducing a per-transaction gas cap to improve efficiency and prepare for parallel execution.
Crypto Market Developments
On Tuesday, the cryptocurrency market was very unstable as major digital assets rose to important resistance levels. The new momentum came with key changes in the industry that might change the way it works, such as changes in rules and regulations. The US Federal Reserve said it is looking into a new “payment account” model that would let fintech and crypto companies connect directly to the central bank’s payment system. This might end years of problems with banking access for the industry.
Coinbase bought the crowdfunding site Echo for $375 million in a big move to consolidate. This shows that the exchange is betting on community-driven early-stage investing as the next big thing in crypto. Coinbase bought the company just one day after spending $25 million to bring back the popular UpOnly podcast from the 2021 bull market. They did this by buying and burning a non-fungible token that is now the fifth most expensive NFT in crypto history. These changes show that established players are getting ready for the next market cycle in a big way.
The Federal Reserve’s proposed “payment accounts” would provide fintech companies full access to Fed payment services, which are now only available to large banks through traditional “master accounts.” Christopher J. Waller, a member of the Federal Reserve Board, stressed the central bank’s dedication to fostering innovation in the payment system. He said that these “skinny” master accounts would give people access to Fed payment rails while keeping the Federal Reserve and the payment system safe from different dangers.
Bitcoin Slides to $108,000 After Gains on Tuesday
Bitcoin (BTC) showed significant positive momentum on Tuesday, reaching a daily high of $114,000 after recovering from the terrible sell-off on October 10 that caused $20 billion in futures liquidations. CoinGlass data shows that open interest in Bitcoin futures rose along with the increase. It rose from a low of $28 billion on October 11 to more than $32 billion. The rise in open interest shows that traders are coming back to the market with more confidence and opening new positions.
According to Hyblock’s analysis, the breakout rise from $107,453 to $114,000 was in line with Bitcoin’s four-hour anchored open interest and cumulative volume delta becoming positive. The financing rate for BTC also went up, which suggests that futures markets were the main reason for the rally. As the price of Bitcoin settles back into a range after a sell-off, traders have started to focus on the areas with the most liquidity. On Tuesday, the price action absorbed topside liquidity in the $114,000 to $115,000 region. Technical analysts, on the other hand, say that sellers will keep closing successful positions at the highs of the day, while bulls protect the important $107,000 support level.
Ethereum Gets Ready for Fusaka Upgrade
Ethereum temporarily rose to $4,110 on Tuesday with the market’s overall rise, but the most important thing that happened on the network was technical, not price-related. The highly awaited Fusaka upgrade for Ethereum is now in its final testnet phase. This is the last big stage before the mainnet launch, which is planned to happen on December 3, 2025. The upgrade adds a gas cap of about 16.78 million units per transaction. This is meant to make blocks perform better and get the network ready for future upgrades that will let it run several transactions at the same time.
The update is already in effect on the Holesky and Sepolia testnets. It stops one transaction from using up the entire gas limit of a block. In the past, one transaction may take up to the maximum block gas limit of about 45 million units, which could cause denial-of-service attacks and make it harder to scale. The Fusaka upgrade sets the default block gas limit for Ethereum at 60 million and adds the per-transaction cap from EIP-7825.
The main feature of the upgrade is PeerDAS (Peer Data Availability Sampling), which lets Ethereum nodes store only small random pieces of layer-2 “blob” data instead of whole datasets. This lowers hardware requirements while keeping security and making scaling for layer-2 networks cheaper and faster. On October 28, the next phase will be place on the Hoodi testnet. After that, the Glamsterdam upgrade will come out. This is Ethereum’s first big move toward processing transactions in parallel.
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