Bitcoin has snapped back with a vengeance.
The asset reclaimed the $93,000 level overnight, effectively erasing Monday’s rout as a coordinated institutional pivot squeezed short sellers out of the market.
The rebound was broad and aggressive. Bitcoin has rallied 9.4% since 3.45pm UTC on Monday to trade at $93,471 at 0700 UTC today, bouncing cleanly off Monday's low of $86,868.
The momentum spilled over into major altcoins, with Ethereum reclaiming the $3,000 level to trade at $3,068 (+12.6%), while BNB surged 11.7% to $899. Solana and XRP also joined the rally, climbing 15.5% to $142 and 10.5% to $2.19, respectively, signaling a market-wide "risk-on" shift.
The catalyst was the US market open on Tuesday, marking the first session where Vanguard’s 50mn clients could officially access spot crypto ETFs.
Bloomberg analyst Eric Balchunas dubbed the surge "The Vanguard Effect," noting that BlackRock’s IBIT ETF saw $1bn in volume within the first 30 minutes of trading, a clear signal that pent-up demand from conservative portfolios is rapidly deploying capital.
The green light
The momentum was further fueled by Bank of America, which explicitly endorsed a 1% to 4% crypto allocation for its wealth management clients. The mandate effectively greenlights 15,000 advisors to pitch digital assets directly, aligning the banking giant with rivals like Morgan Stanley and Fidelity.
The Trump Put
The macro environment also turned decidedly friendlier overnight. Alongside the Federal Reserve’s decision to halt Quantitative Tightening (QT), President Donald Trump effectively put a floor under risk assets by confirming he has selected a replacement for Jerome Powell.
Speaking to reporters, Trump derided the current chair as a "stubborn ox" for his "timid" rate cuts and signaled that his incoming pick, widely rumored to be dove Kevin Hassett, will move aggressively to lower borrowing costs in 2026.
Combined with the Federal Reserve’s decision to halt Quantitative Tightening (QT), the macro environment has flipped overnight.
Former Binance CEO Changpeng Zhao (CZ) captured the mood on X, predicting "many more ATHs coming soon" as the market digested the reality that two of the most conservative names in finance capitulated on the same day.
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