TL;DR
- Vanguard’s decision to allow crypto ETFs has pushed Bitcoin above $93,000, marking a 10% rally this week.
- Macro conditions, including an expected US interest rate cut, support risk-on sentiment benefiting digital assets.
- Over $490 million in crypto liquidations occurred in the last 24 hours, highlighting market volatility, with BTC leading at $243 million and ETH at $101 million.
Bitcoin surged past $93,000, gaining 7% in the last 24 hours, following a major policy shift by Vanguard, the $11 trillion asset manager that had long avoided digital assets. Analysts link the rally to broader macroeconomic expectations, as investors anticipate the Federal Reserve will lower interest rates in its upcoming meeting. Ethereum also climbed 9% to $3,064, reflecting widespread market optimism.
Vanguard’s Strategic Shift Boosts Bitcoin Demand
Vanguard’s embrace of regulated crypto ETFs opens the door for over 50 million retail clients to access digital assets. This move aligns Vanguard with other institutional giants such as BlackRock, Fidelity, and Franklin Templeton, which have incorporated crypto products over the past two years. Analysts say the decision signals growing institutional confidence, providing Bitcoin with a fresh source of inflows. Data from DefiLlama shows crypto ETFs added $59 million yesterday, continuing a five-day streak of net positive investment.
Market data also shows a pronounced imbalance in liquidations. Coinglass reports $419 million in short positions wiped out compared to $71 million in long positions, driven by sudden bullish moves. BTC led the losses at $243 million, while ETH accounted for $101 million, followed by SOL at $20.7 million and ZEC at $18.6 million. Bybit alone recorded a single liquidation of $13 million on BTCUSD, highlighting volatility at large order levels.
Macro Tailwinds Support Crypto Rally
Investors are pricing in a 87% probability of a 0.25% rate cut next Wednesday, according to CME FedWatch, with Polymarket bettors even more optimistic at 94%. Comments from Fed officials, including Christopher Waller, John Williams, and Mary Daly, have reinforced expectations for easing. Coinbase Singapore’s Hassan Ahmed noted that potential rate cuts could reignite risk appetite, benefiting digital assets globally.
The Nasdaq 100 also rose nearly 1%, signaling broader risk-on sentiment in equity markets. Analysts suggest that the combination of institutional adoption, ETF inflows, and macroeconomic easing could sustain Bitcoin’s momentum in the short term.
Bitcoin and Ethereum now show strong performance across trading platforms, reflecting both short-term liquidations and renewed investor interest, suggesting the market may remain in an upward trajectory as policy expectations unfold.
