by Vincent Muthee
Bitcoin (BTC) has made a staggering move past $90,000 to reach above $92,000 as the market rebounds strongly. This price action has been fueled by various factors including institutional greenlight, fresh liquidity boost and growing investor optimism driven by a potential favorable policy move by the US Federal Reserve.
BTC Reclaims $91,000 in a Staggering Move
According to data by Coingecko, Bitcoin has pushed to an intraday high of $92,041 as bullish pressure intensifies across major exchanges. The king crypto made this move climbing over 7.8% from around $84,700 level to the current level as confidence resurges among investors.
Amid the BTC price recovery, traders who bet against the rebound suffered huge losses. Almost $221 million in short positions were wiped out in four hours per data by Coinglass. These positions made up more than 50% of all liquidations in the past 24 hours which totaled $412.13 million.
What’s Driving the Bitcoin Price Recovery?
Bank of America kicked off the wave of optimism. As per a report by Yahoo Finance, earlier today, the bank announced that it will soon recommend a 1% to 4% allocation of customer portfolio to digital assets through spot Bitcoin ETFs. This move will take effect in January 2026.
At the moment, the bank already allows clients to buy crypto on their own, but this change opens direct access for more than 15,000 advisers who manage over $2 trillion. This new development sent a clear signal to wealth managers who waited for a major bank to take the first step.
Vanguard then shook the market with an unexpected reversal. The firm said it will open trading for crypto ETFs on December 2. The list includes BTC, ETH, XRP, and SOL products. Millions of conservative investors hold accounts with Vanguard. Their entry into the market creates new demand as trading desks monitor a spike in ETF activity. Bloomberg’s Eric Balchunas called the shift “The Vanguard Effect” after Bitcoin jumped around 6% when U.S. markets opened.
“THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not. Also $1b in IBIT volume in the first 30min of trading. I knew those Vanguardians had a little degen in them, even some of the most conservative investors like to add a little hot sauce to their portfolio,” Balchunas wrote.
Macro conditions also added more fuel as traders watched liquidity increase after the Federal Reserve ended its quantitative tightening (QT) program. The change removed a major pressure point on global markets as noted by market watcher Mayank Kharayat. Lower rate expectations also lifted demand for alternative assets as investors rotated into higher-risk plays.
The Fed also contributed even more momentum by injecting $13.5 billion into the market during the QT wind-down. Traders treated this move as a direct signal that policy will stay supportive for longer. Bitcoin reacted immediately as sentiment flipped from fear to relief within hours.
What’s Next for Bitcoin?
If Bitcoin surges past the immediate resistance around $92,500 which capped the previous recovery attempt, then bullish momentum might continue. The next key resistance zone to watch is around the $98,000 region. A push past this level may trigger a stronger recovery.
Failure to break the $92,500 barrier may cause some hesitation. Stagnation at that level could invite short sellers back into the market. A rejection here might drag the price below $90,000 again.
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