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.
The original cryptocurrency’s price hike follows Vanguard’s decision to let its customers buy and sell crypto ETFs, in a turnaround from its longtime aversion to the sector.
“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.
Crypto’s struggles for much of October and November showed that the sector is often tied to macroeconomic factors. President Donald Trump’s tariff threats to China were followed by an October flash crash for crypto, where traders lost $19 billion in assets. And for much of those two months, a December rate cut from the Federal Reserve seemed unlikely, pulling investors away from risky assets.
The outlook appears to be a bit rosier for those in the crypto industry, as a Fed rate cut now seems likely. The shift in sentiment stems from recent remarks by New York Fed President John Williams, who spoke optimistically about cutting rates.
“With a Fed rate cut expected at the December meeting, liquidity should remain supportive of risk assets into 2026,” Thompson added.