Crypto markets strengthened on Tuesday, buoyed by fresh institutional support as major U.S. financial firms moved closer to embracing digital assets.
Bitcoin rallied during U.S. morning trading, climbing back above $90,000 and reversing most of the sharp weekend drop that briefly pushed it under $84,000. The top cryptocurrency recently traded around $91,180, an 8% gain over the past 24 hours that helped spark a broader market rebound.
Ethereum followed with a solid recovery, jumping above $3,000 after a 9% rise. Large-cap altcoins also turned higher, with XRP, Solana’s SOL and dogecoin advancing between 7% and 10% as they bounced off recent lows.
The improved sentiment came after a pivotal shift from Vanguard, the $11 trillion asset management giant, which ended its longstanding refusal to offer crypto exposure. The firm will now give clients access to digital asset ETFs. Meanwhile, Bank of America approved guidance allowing its wealth advisors to recommend a 1%–4% allocation to spot bitcoin ETFs—another sign of deepening institutional adoption.
Analyst flags risks from Japan’s bond market
Even with the rebound, some analysts warned that global macro forces could introduce new pressure. Mark Connors, founder and chief macro strategist at Risk Dimensions and former global head of risk advisory at Credit Suisse, said a potential rise in Japan’s 10-year government bond yield could redirect capital away from global risk assets. Bitcoin, he noted, could be among the hardest hit given its dependence on Asian liquidity and high leverage across the market.
Connors pointed to Binance—which accounts for nearly half of global crypto trading and allows leverage up to 50x—as particularly sensitive to swings in the yen and yuan. He added that bitcoin appears to be leading declines in the S&P 500, a pattern that may persist until the Federal Reserve and Bank of Japan announce their policy decisions later this month. If market conditions deteriorate further, he expects authorities to step in, as they often have during recent periods of financial stress.
Still, not all indicators support a bearish view. Jasper De Maere, desk strategist at Wintermute, said derivatives markets reveal “a clear lean toward bullish, short-vol behaviour,” with traders selling downside puts around the $80,000–$85,000 range while selectively adding upside exposure.
De Maere said this setup suggests traders view the $80,000–$85,000 zone as firm support and are comfortable holding long positions into year-end, earning carry while positioning for a potential market recovery.
