Bitcoin rose back above $90,000 during the US morning of Tuesday, erasing most of its sharp fall from Sunday to Monday to fall below $84,000. The largest cryptocurrency was recently trading at $91,180, up 8% in the past 24 hours, helping to lift broader digital asset markets.
Ethereum Ether rebounded above $3,000, gaining 9% during the same period. Large-cap altcoins also followed this progression: the GROUND of Solana , rose 7-10%, recovering from recent lows.
The gains came as $11 trillion asset management giant Vanguard dropped its long-standing fatwa against crypto and will now allow its clients access to digital asset ETFs. Alongside Bank of America gave his agreement for its wealth managers to recommend a 1-4% allocation to spot Bitcoin ETFs.
Japanese yield shock could hit bitcoin hard, analyst warns
Mark Connors, founder and chief macro strategist at investment consultancy Bitcoin Risk Dimensions and former global head of risk advisory at Credit Suisse, warns that a rise in the Japanese 10-year yield could drive capital away from global markets, with crypto – particularly bitcoin – hit harder due to its proximity to Asian capital flows and exposure to leverage. Binance, which manages almost half of all crypto volume and allows leverage of up to 50x, is particularly vulnerable to the volatility of the yen and yuan.
Connors also pointed out that Bitcoin appears to be leading the S&P 500 lower. This trend could continue until the Federal Reserve and Bank of Japan hold their policy meetings later this month. If markets weaken further, he expects some form of intervention, as has often happened during times of stress in recent years.
Yet not all signals point to weakness. Jasper De Maere, desk strategist at Wintermute, said Bitcoin derivatives show a “clear trend towards bullish and short-term behavior.” Traders are selling positions on the dips around the $80,000-$85,000 level while selectively buying on the upside further out.
“The combination suggests a market that views $80,000-$85,000 as supported and is comfortable leaning into the end of the year while earning profits along the way,” De Maere said. In other words, despite short-term pressures, traders appear positioned for a recovery.
Learn more: On Thin Ice: Crypto Daybook Americas
