Bitcoin climbed back above $93,000 on Wednesday in a broad crypto market rally, recouping some of the steep losses that sparked nearly $500 million in liquidations on Monday.
The move offered some relief after a chaotic start to the week, although the rebound does little to calm nerves following a series of structural shocks across the market.
Bitcoin rose more than 7% over the past day to trade near $93,360 in Asian morning hours, reversing some of the heavy selling that pushed the asset below $84,000 on Monday. Ether gained over 9% to reclaim the $3,000 level. Solana, Cardano, XRP, and several other large-cap tokens posted double-digit advances, with SOL and ADA rising more than 12% each.
The recovery followed a decline in derivatives markets, where approximately $457 million in short positions were liquidated in the last 24 hours. Bitcoin accounted for $224 million of that total, while Ether added another $94 million, according to data from Coinglass.
The restructuring removed much of the leveraged positioning that had built up during the recent downturn.
But sentiment remains cautious despite the rally. Bitcoin’s sell-off earlier in the week coincided with the weekend’s decline in liquidity and the effects of macroeconomic jitters, creating a volatile backdrop that amplified price swings.
The broader market is still digesting concerns related to corporate balance sheet exposure, including sharp declines in strategy-linked ETFs and the pending MSCI methodology review, both of which have weighed on risk appetite in recent sessions.
Tuesday’s rally was helped by a handful of incremental catalysts.
The market saw renewed optimism following comments from US Securities and Exchange Commission Chairman Paul Atkins, who said the agency plans to detail the framework behind a proposed “innovation exemption” for digital asset companies.
It was seen as a step toward regulatory clarity after months of policymaking deadlock. Vanguard’s decision this week to allow trading of cryptocurrency-focused ETFs and mutual funds on its platform also helped improve sentiment after a long period of outflows.
Still, the structure of the rally suggests that it is primarily a relief move rather than a trend reversal. Market depth remains uneven and several major tokens are recovering from multi-week lows.
The next test is whether spot demand can sustain the move once derivatives markets stabilize following the settlement cycle.
