Just a day after widespread losses across the crypto market, prices have turned sharply upward. Bitcoin is up over 7% and trading above $91,000, recovering from lows below $84,000 seen just yesterday.
Ethereum gained more than 9%, briefly surpassing $3,000. Solana rose by 12.5% and is now trading just under $140. XRP and BNB also posted solid gains, each rising around 7%. The global crypto market cap jumped by more than $200 billion in 24 hours, reaching nearly $3.1 trillion.
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ETF Developments and Institutional Moves
A key factor behind the recovery appears to be renewed institutional interest. Vanguard reversed its previous stance on crypto, allowing clients access to digital asset ETFs. Bank of America also announced that its wealth managers can now recommend up to a 4% allocation to spot Bitcoin ETFs.
At the same time, the CME FedWatch tool shows growing expectations for a rate cut in the Federal Reserve’s December meeting, which has historically supported risk assets like crypto.
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Short Liquidations Accelerate the Move
Data from Coinglass shows over $185 million in Bitcoin short positions were liquidated during the rally, adding momentum to the price increase. In total, nearly $330 million in crypto shorts were cleared out across major exchanges in less than 24 hours.
This kind of forced buying can create rapid upward pressure, particularly in a market that had already been showing signs of a potential rebound. Trading volume also picked up sharply, with Bitcoin ETF products like BlackRock’s IBIT seeing over $1 billion in volume during U.S. market open on Tuesday.
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Key Levels to Watch
Investors are now watching whether Bitcoin can hold the $90,000 level as support. Technical indicators suggest further upside is possible if this level is defended. If not, a return to the $85K–$87K range remains on the table.
The $3 trillion market cap level continues to act as a psychological benchmark for the broader crypto market. Whether this rebound holds may depend on macroeconomic data and investor response to the recent policy changes.
