After a swift drop below $84,000 early in the week, Bitcoin has regained momentum this Tuesday, surpassing $90,000 once again and finding its footing. The market quickly digests the shake-up, buoyed by two heavy institutional signals: Vanguard’s historic turnaround and Bank of America’s opening up to increased BTC adoption in wealth management.
Vanguard, Bank of America: two giants rekindling sentiment
The return of buyers coincides with a major shift in traditional finance. Vanguard, a behemoth with $11 trillion under management, now allows trading of crypto ETFs on its platform. Meanwhile, Bank of America greenlights its advisors to recommend between 1% and 4% exposure to spot Bitcoin ETFs.
These two decisions remove a psychological barrier for a portion of institutional capital. They add a structural flow that positively impacts the market just as volatility had pushed BTC to its limits.
According to Bloomberg’s ETF specialist, Eric Balchunas, the influx of Vanguard investors is a direct result of today’s Bitcoin price surge:
In the wake of the rebound, Ethereum rises above $3,000 again, while XRP, Solana, DOGE, and other large caps gain 7% to 10%.
A massive support detected between $80,000 and $85,000
For several analysts, the $80,000 – $85,000 zone now serves as the first line of defense. Jasper De Maere, strategist at Wintermute, observes a highly revealing derivatives structure: massive put sales at the bottom of the range and selective call purchases further out. The message is clear. The market deems this corridor solidly supported and doesn’t hesitate to take long positions towards year-end while pocketing carry.
This sentiment dynamic contrasts with the nervousness that accompanied the Sunday night correction. The most sophisticated players seem to bet on the resilience of the $80,000 level rather than a deep reversal.
A threat from Japan: rising rates could shake Bitcoin
Not everything is rosy, though. Mark Connors, founder of Risk Dimensions and former risk strategy head at Credit Suisse, warns that a surge in Japanese 10-year yields could trigger capital repatriation and weigh on global markets. Bitcoin, highly exposed to Asian flows and leverage, would be particularly vulnerable.
He specifically mentions Binance, which handles nearly half of global crypto volume and allows leverage up to 50x. Volatility in the yen or yuan can quickly cause liquidation cascades.
Connors adds that Bitcoin seems to lead the decline of the S&P 500. This pattern could persist until the Fed and Bank of Japan meetings later this month. If pressure intensifies, he expects some form of intervention to stabilize the markets.
An electrifying year-end in store
With a solid technical support, accelerating institutional adoption, and an still uncertain macro context, Bitcoin is evolving in a constructive tension. The market shows it can absorb rapid shocks without losing its underlying bullish bias.
For now, BTC remains firmly above $90,000. And if the $80,000 – $85,000 range holds as derivatives suggest, the year-end could even bring new highs.
