Bitcoin Surges Back Above $90,000 as Market Responds Positively to Moves by Major Institutions Including Bank of America

Bitcoin (BTC) rose approximately 6% on the 3rd, recovering to $90,000 (about ¥14 million). Ethereum (ETH) also rebounded to the key level of $3,000 (about ¥467,000), marking a broad market recovery following the sharp decline earlier this week.

One of the major drivers behind the market’s rebound is the recent movement among leading financial institutions. Bank of America has recommended that its clients allocate 1–4% of their portfolios to crypto assets and similar products. The bank is also expected to begin investing in spot Bitcoin ETFs, including BlackRock’s IBIT.

Additionally, Vanguard, a major asset management firm previously seen as hesitant toward cryptocurrencies, announced on the 2nd that it will begin offering access to crypto-related ETFs. Starting on the 3rd, investors can gain exposure to ETFs linked to Bitcoin, Ethereum, XRP, and Solana (SOL).

Another positive catalyst came from the U.S. Securities and Exchange Commission (SEC), which indicated plans to introduce an “innovation exemption” for the digital asset sector. SEC Commissioner Paul Atkins stated in an interview with CNBC that the U.S. is prepared to “embrace areas of innovation it has long resisted,” signaling a willingness to support IPOs and capital-raising opportunities for crypto-related companies.

Bitcoin has also shown signs of a temporary technical rebound. Looking ahead, the market is expected to remain focused on the upcoming FOMC (Federal Open Market Committee) meetings scheduled for December 9–10.

Initially, due to limited economic data stemming from the U.S. government shutdown, most forecasts expected the Federal Reserve (FRB) to keep interest rates unchanged. However, with the labor market showing weakness, expectations for an additional rate cut have grown. According to the CME FedWatch Tool, the probability of a rate cut has risen to 89.2% at the time of writing.

While the market is increasingly hopeful for a rate cut, Fed Chair Jerome Powell has indicated that there are “differences of opinion” among board members, suggesting that caution is still warranted.

Meanwhile, Bank of Japan Governor Kazuo Ueda hinted at a potential rate hike on the 1st, meaning that the market must also closely watch the BOJ’s monetary policy meeting to be held on December 18–19.

Image: Shutterstock

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