Wall Street funds unexpectedly "turned around," driving Bitcoin up

Bitcoin defied the trend and broke through $90,000, alleviating market concerns from early December. Vanguard's unexpected return, along with the Fed's signals of monetary easing, triggered a surge of large capital inflows.

Since December 2, Vanguard has lifted the trading restrictions on crypto ETFs, bringing about the "Vanguard effect"—the trading volume of the IBIT fund reached $1 billion in the first 30 minutes, and cautious investors began to enter the market. Bank of America allows advisors to suggest clients allocate 1–4% of their investments to cryptocurrencies, attracting more capital inflows.

The Fed has ended quantitative tightening (QT) and injected $13.5 billion in liquidity, providing support for the market. CME FedWatch shows that the probability of a 25 basis point rate cut in December has risen to 87.2%, with institutional easing creating a "perfect storm."

Looking ahead to 2025-2026: Bitcoin may maintain a fluctuation range of $83,000–$95,000 before the end of the year; if the Fed cuts rates as expected, it could reach $110,000–$135,000/BTC in the long term. Key support is at $75,000/BTC; a drop below this level increases risks.

As capital flows in and U.S. regulations become clearer, the potential of the crypto market is accumulating. The market is holding its breath for the Fed's December meeting to determine whether this rally will set new records.

😁 Do you dare to believe in Bitcoin now?