Bitcoin (COIN:BTCUSD) powered higher on Wednesday, reclaiming the $93,000 level after tumbling toward $84,000 at the start of the week. Traders pointed to a more constructive regulatory tone in the U.S. as well as stronger conviction that the Federal Reserve could lower borrowing costs in the coming days.
As of 02:19 ET (07:19 GMT), Bitcoin was up 7.2%, trading at $93,101.6.
The rebound follows a sharp slide that briefly pulled the token below $85,000 — extending an approximately 33% correction from the record highs above $126,000 set in early October.
SEC remarks and Vanguard’s policy shift bolster sentiment
A large part of the renewed optimism stemmed from comments by SEC Chair Paul Atkins, who reaffirmed that the regulator intends to roll out a revamped framework for crypto markets, including a proposed “innovation exemption.”
The initiative is expected to provide updated guidance surrounding the issuance, storage, and trading of digital assets as the agency works to modernize its oversight.
Institutional confidence also received a boost from Vanguard’s surprise policy reversal. The asset-management giant — the second largest in the world — said it will begin permitting trades in cryptocurrency-linked ETFs and mutual funds on its brokerage platform this week.
The decision opens the door to regulated crypto exposure for millions of investors and highlights the asset class’s increasing acceptance across traditional finance.
Bitcoin also drew support from rising expectations of a Federal Reserve rate cut next week, a development that often boosts appetite for dollar-priced risk assets.
Even so, the violent price swings seen recently have kept some traders wary, with many questioning whether the rally can sustain itself.
Altcoins surge as broader crypto market rebounds
The upswing extended across the digital asset landscape.
Ethereum, the second-largest cryptocurrency, jumped 10% to $3,062.92.
XRP climbed 9.3% to $2.20, maintaining its position as the third-biggest token by market cap.
Solana rallied 12%, Cardano surged 14%, and Polygon strengthened 7%.
In the meme-token category, Dogecoin advanced 11% and $TRUMP gained 5.7%.
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