Bitcoin is known for its volatility—and lately it’s living up to that reputation. After a weeks-long stretch of decline, Bitcoin’s price jumped around 11% in the last two days alone, climbing to just under $93,000.
TL;DR
- Bitcoin's price surged nearly 11% to under $93,000 after Vanguard allowed crypto ETF trading.
- Vanguard's decision to permit crypto ETFs potentially opens access to its 50 million brokerage customers.
- Bitcoin previously dropped 8% due to Japan's bond yield increase and a nearly two-month slide.
- Crypto market faced a flash crash after President Donald Trump's tariffs on China, impacting traders.
The initial cryptocurrency's surge in value comes after Vanguard’s decision to permit its clientele to purchase and trade crypto ETFs, marking a shift from its enduring reluctance towards the industry.
“Market jitters were calmed by the news that Vanguard was reversing its long held decision to ban crypto ETFs from its platform,” said Russell Thompson, chief investment officer at Hilbert Group. “That potentially opens up crypto access to its 50 million brokerage customers.”
Prior to the surge, the week had started off disastrously for Bitcoin. From Sunday into Monday, the major cryptocurrency dropped 8% in part because of Japan raising their two-year bond yield to a 17-year high. That dip punctuated a nearly two-month long slide for the original cryptocurrency. Six weeks after its $126,000 high in early October, Bitcoin plunged 35% to a low of $82,000.
Throughout much of October and November, cryptocurrency's difficulties highlighted the sector's frequent connection to broader economic trends. Following President Donald Trump's imposition of tariffs on China, the crypto market experienced a October flash crash, resulting in traders losing $19 billion in holdings. Furthermore, during that two-month period, the likelihood of a December interest rate reduction by The Federal Reserve appeared improbable, prompting investors to divest from speculative investments.
The crypto sector's prospects seem somewhat brighter, with a Federal Reserve interest rate reduction now seems likely. This change in outlook is attributed to recent comments from New York Fed President John Williams, who expressed a positive view on lowering rates.
“With a Fed rate cut expected at the December meeting, liquidity should remain supportive of risk assets into 2026,” Thompson added.
