Daniel Walker
Crypto markets saw a sharp recovery on Tuesday as traders reacted to heightened expectations of Federal Reserve rate cuts and a surge in U.S. ETF activity following Vanguardโs decision to remove its ban on bitcoin ETF purchases.
Bitcoin surged back above $91,000, gaining roughly 8% in 24 hours, while Ether reclaimed the $3,000 level after jumping 10%, according to PRIMEโs pricing data.
The overall cryptocurrency market cap climbed to $3.06 trillion, reversing losses from Sundayโs abrupt dip below the $3 trillion mark.
Bloomberg Intelligence analyst Eric Balchunas noted that bitcoinโs rally aligned almost perfectly with the opening bell of U.S. equities โ the very first session in which Vanguard clients could once again trade spot bitcoin ETFs.
He pointed out that BlackRockโs IBIT recorded nearly $1 billion in volume within its first 30 minutes of trading.
Vanguardโs reversal came alongside another major development: Bank of America reportedly notified advisors at Merrill, Merrill Edge and Private Bank that clients may now allocate 1%โ4% of portfolios into crypto, ending years of restrictions affecting more than 15,000 financial advisors.
Bitwise CEO Hunter Horsley described these simultaneous shifts as a classic signal of a market bottom, noting that major policy changes often surface when sentiment is low.
Bitwise CIO Matt Hougan echoed the view, saying positive developments in a downtrend are โignored but not forgotten,โ eventually building โpotential energyโ for the next major upswing.
Fed Rate Cut Expectations Intensify
Traders are increasingly pricing in aggressive monetary easing.
According to CME FedWatch, there is now an 87.2% probability that the Fed will cut rates by 25 basis points at the December 10 meeting โ a steep jump from 63% just one month ago. Only 12.8% expect rates to stay within the current 375โ400 bps range.
The shift has fueled demand across risk assets that depend on looser liquidity conditions, including digital assets.
Top Altcoins Rally With Strong Momentum
Among the top-20 cryptocurrencies:
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ADA climbed roughly 14.5%
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SOL gained 11%
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LINK jumped more than 12%
Chainlink benefited further from Grayscaleโs launch of the GLNK ETF on NYSE Arca โ the first U.S. spot ETF tied to LINK โ providing an added catalyst to an already strong day for oracle-focused tokens.
SEC Chairman Signals Imminent Crypto Regulation
In an interview with CNBCโs Squawk Box, SEC Chairman Paul Atkins revealed that the agency is preparing an โinnovation exemptionโ and expects to advance long-delayed crypto regulatory frameworks within the next month.
Atkins described the effort as part of a broader push to modernize U.S. capital markets and adapt rules to emerging financial technologies.
