From Fall to Rise: Bitcoin Stuck at $93,000, What's Next?
Bitcoin moved relatively steadily in European trading on Thursday, after a sharp rebound to break through the $93,000 level in the previous session. At 2:56 AM ET (7:56 AM GMT), Bitcoin was down slightly, around 0.2%, at around $93,209 per coin. This relatively flat movement follows a major sell-off earlier in the week that briefly dragged the price near the $84,000 area, indicating continued high volatility in the crypto market.
Bitcoin's rebound was driven by a combination of regulatory and monetary policy sentiment. On the regulatory front, comments by US SEC Chairman Paul Atkins hinting at plans to establish a special "innovation exemption" for digital asset companies helped restore confidence in the direction of crypto regulation in the United States. At the same time, major asset managers like Vanguard lifted their internal ban on crypto ETF products and are now allowing clients to trade third-party crypto ETFs and mutual funds on their platforms. These moves are seen as a sign of growing institutional interest and the potential for new capital inflows into Bitcoin.
On a macro level, the economic backdrop also provides additional support. Expectations that the Federal Reserve will cut interest rates at its meeting next week have boosted interest in riskier assets, including crypto. Liquidity conditions have also improved after the Fed ended its quantitative easing (QT) program on December 1st and resumed large-scale repo operations, injecting fresh funds into the financial system. Bitcoin's price surge from below $84,000 to above $93,000 in a short period of time illustrates the fragile market structure, with forced liquidation of short positions contributing to price movements.
Altcoins Also Strengthen, But Remain Cautious
In the altcoin market, sentiment tended to be positive, although movements remained within a relatively tight range. Ethereum, the second-largest cryptocurrency, fell around 0.4% to around $3,181. XRP weakened slightly, dropping 0.6% to around $2.18. Meanwhile, Solana fell more than 1%, Cardano fell around 0.6%, and Polygon corrected around 0.3%. This pattern indicates that risk appetite in the crypto market remains, but investors remain selective and cautious following the sharp volatility that occurred earlier in the week.
Source: Newsmaker.id
