Bitcoin moved back above the $93,000 level on Wednesday, recovering from Monday’s steep decline toward $84,000. The rise came as investors reacted to improved regulatory signals in the U.S. and growing expectations of an upcoming interest rate cut.
By 09:49 ET (14:49 GMT), Bitcoin traded 4.1% higher at $92,949.
This rebound followed a difficult start to the week, when Bitcoin briefly dropped below $85,000. That move marked a roughly 33% pullback from its early-October record above $126,000.
Regulatory support and Vanguard’s shift lift sentiment
Analysts linked much of Wednesday’s strength to comments from U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins. He confirmed that the agency plans to introduce a new regulatory framework for digital-asset companies, including an “innovation exemption.”
This exemption aims to provide clearer rules on issuance, custody, and trading as the SEC updates its approach to the crypto sector.
Institutional interest also strengthened after Vanguard reversed its long-held position on crypto products. The asset-management giant announced that it will now allow trading of cryptocurrency-focused ETFs and mutual funds on its brokerage platform.
This change expands regulated access for millions of investors and signals growing acceptance of digital-asset products across traditional finance.
Investors also increased their bets on a Federal Reserve rate cut next week. A potential cut boosts Bitcoin’s appeal as a risk-sensitive asset priced in U.S. dollars.
However, recent volatility has kept traders cautious, raising questions about whether the latest rebound can hold.
Saylor responds to possible Strategy removal from MSCI indices
Michael Saylor, chairman of Strategy, addressed concerns about the company’s future index status. Strategy is the largest corporate holder of Bitcoin, and MSCI is reviewing whether firms that primarily accumulate crypto should remain in its benchmarks.
A decision is expected by January 15. JPMorgan estimates that Strategy could face up to $8.8 billion in outflows if MSCI removes such companies and other index providers follow.
Strategy is currently part of the MSCI USA and MSCI World indices, which help drive passive investment flows that support liquidity and valuation.
Speaking at a Binance event in Dubai, Saylor said the company is actively engaging in discussions with MSCI. He also questioned the accuracy of JPMorgan’s projections and stated that even if the company is removed, “It won’t make any difference, in my opinion.”
Crypto market today: altcoins join the rebound
Altcoins rallied strongly on Wednesday as broader market sentiment improved.
Ethereum surged nearly 9% to $3,132.28.
XRP climbed 5% to $2.18.
Solana gained more than 7%, and Cardano rose 8%. Polygon recovered 2.8%.
Among meme tokens, Dogecoin advanced 6.4%, while $TRUMP rose 2.6%.
