Bitcoin held steady on Thursday after a sharp rebound above $93,000 in the previous session. The recovery was supported by improved regulatory sentiment and rising expectations of a Federal Reserve rate cut next week.
By 01:56 ET (06:56 GMT), Bitcoin traded 0.3% lower at $93,140.6.
The calm followed a steep sell-off earlier in the week that briefly pushed prices toward $84,000. Confidence returned after a series of positive regulatory signals in the United States. Comments from SEC Chair Paul Atkins, who said the agency plans to introduce an “innovation exemption” for digital-asset firms, helped boost sentiment across the crypto market.
Another major catalyst came from Vanguard. The asset manager reversed its previous ban on crypto-related ETFs and will now allow clients to trade third-party crypto ETFs and mutual funds on its brokerage platform. The decision increased institutional interest and strengthened expectations of fresh inflows into Bitcoin.
Growing optimism over a potential Federal Reserve rate cut next week also supported risk assets. Liquidity conditions improved as well, following the Fed’s decision to end quantitative tightening on December 1 and return to large-scale repo operations. This shift injected new cash into the financial system.
The recent swing from below $84,000 to above $93,000 highlights Bitcoin’s fragile market structure. Forced short liquidations added to the volatility seen earlier in the week.
Altcoins were mostly positive on Thursday but continued to trade within narrow ranges. Ethereum rose 4.6% to $3,210.14. XRP slipped 0.6% to $2.18. Solana gained 1% and Cardano added 2%, while Polygon dipped 0.9%. Among meme tokens, Dogecoin and $TRUMP saw little movement.
