Bitcoin rebounded above $93,000 on Wednesday, leading a broad crypto-market recovery after a volatile start to the week that saw nearly $457 million in liquidations. While the bounce offered some relief, lingering structural concerns and macro uncertainty continue to temper market sentiment.
BTC climbed more than 7% over the past 24 hours, trading near $93,360 in Asian morning hours, partially recovering from Monday’s selloff that pushed the asset below $84,000. Ether gained over 9%, reclaiming the $3,000 level, while Solana, Cardano, XRP, and other major altcoins posted double-digit gains—SOL and ADA each rising more than 12%.
The rebound followed a significant shakeout in derivatives markets, where roughly $457 million in short positions were liquidated over the past day. Bitcoin accounted for $224 million of these liquidations, and Ether added $94 million, according to Coinglass. The selloff helped unwind a large portion of leveraged positions that had accumulated during the recent downturn.
Despite the rebound, caution remains. Bitcoin’s early-week drop coincided with thin weekend liquidity and macroeconomic jitters, amplifying price swings. Broader market sentiment has also been pressured by corporate balance-sheet concerns, including sharp drawdowns in strategy-linked ETFs and the pending MSCI methodology review.
Tuesday’s gains were supported by several incremental catalysts. Optimism increased after U.S. SEC Chairman Paul Atkins indicated the agency would clarify the framework for a proposed “innovation exemption” for digital-asset firms, signaling potential regulatory progress. Vanguard’s move to allow trading of crypto-focused ETFs and mutual funds on its platform also helped improve sentiment after weeks of outflows.
Still, analysts view the rebound as largely a relief rally rather than a sustained trend reversal. Market depth remains uneven, and many large-cap tokens are still recovering from multi-week lows. The next key test will be whether spot-market demand can sustain the momentum once the derivatives markets stabilize following the recent liquidation cycle.
