Bitcoin climbed back above $93,000 on Wednesday, recovering strongly from Monday’s sharp fall near $84,000. The rebound was driven by improving regulatory sentiment in the U.S. and rising expectations of an upcoming Federal Reserve rate cut.
The world’s largest cryptocurrency traded 7.2% higher at $93,101.6 as of 02:19 ET (07:19 GMT).
This recovery follows a difficult start to the week. Bitcoin briefly slipped under $85,000, extending a decline of about 33% from its early-October record highs above $126,000.
Regulatory signals and institutional shifts lift sentiment
Much of the recent strength came after positive comments from SEC Chair Paul Atkins. He reiterated the agency’s intention to introduce a new regulatory framework. This includes an “innovation exemption” aimed at giving digital-asset companies clearer guidelines on issuance, custody, and trading.
The proposed exemption is expected to improve regulatory clarity as the SEC updates its approach to the crypto sector.
Bitcoin also received support from institutional developments. Vanguard, the world’s second-largest asset manager, reversed its previous stance and announced it will now allow trading of cryptocurrency-focused ETFs and mutual funds on its brokerage platform. The move increases regulated access for millions of investors and highlights the growing acceptance of crypto within mainstream finance.
Stronger expectations of a Federal Reserve rate cut next week also helped boost demand, making Bitcoin more attractive relative to the U.S. dollar.
Still, recent price volatility has kept traders cautious, with many questioning whether the rebound will hold.
Altcoins rally as broader crypto market recovers
Most altcoins saw strong gains on Wednesday.
Ethereum surged 10% to $3,062.92.
XRP rose 9.3% to $2.20.
Solana jumped 12%, Cardano added 14%, and Polygon gained 7%.
Among meme-based tokens, Dogecoin climbed 11%, while $TRUMP advanced 5.7%.
