Bitcoin Breaks Through: Institutional Shift Ignites Rally Toward $100,000

A dramatic reversal has swept through the cryptocurrency market this week. What began with a sharp sell-off rapidly transformed into a powerful surge, fueled by a stunning change of heart from two pillars of traditional finance. This institutional pivot has not only halted the decline but has also sparked renewed speculation that Bitcoin could challenge the $100,000 threshold before year-end.

Beyond the crypto-specific news, broader financial conditions are providing support. Market pricing now indicates a nearly 90% probability that the U.S. Federal Reserve will implement an interest rate cut at its December 10 meeting. The prospect of looser monetary policy typically weakens the U.S. dollar and acts as a catalyst for risk-sensitive assets like Bitcoin, creating a favorable backdrop for the current advance.

A One-Two Punch from Traditional Finance

The catalyst for the V-shaped recovery is twofold, striking at the core of institutional resistance. In a landmark move, Vanguard—the world’s second-largest asset manager—has unexpectedly reversed its longstanding prohibition on cryptocurrency products. Clients can now trade Bitcoin spot ETFs on its platform, a decision that potentially unlocks trillions in sidelined capital.

Simultaneously, Bank of America has issued a formal recommendation to its clientele. In a newly published analysis, the bank advises allocating between 1% and 4% of a portfolio to digital assets. This endorsement from a major U.S. financial institution is seen as a significant legitimization of Bitcoin as a viable asset class for wealth preservation.

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Short Squeeze Accelerates Momentum

These fundamental shifts collided with a market heavily positioned for further losses following Bitcoin’s recent drop below $84,000. The result was a classic short squeeze. Bears were caught off guard, while large-scale investors, often called "whales," aggressively bought the dip, establishing a solid price floor and forcing a rapid upward move.

• ETF volumes surge: Trading volumes for spot ETFs skyrocketed following Vanguard's announcement. BlackRock's IBIT ETF alone recorded over $1.8 billion in turnover within hours.
• Price action: Bitcoin’s price climbed approximately 0.76% in 24 hours, with its value recovering to around $93,674.

Positive sentiment is spreading across the crypto ecosystem. Ethereum reclaimed the $3,000 level, bolstered by the successful implementation of its "Fusaka" upgrade, which is designed to reduce network transaction fees.

This rapid resilience underscores the market's growing maturity. As the final bastions of traditional finance open their doors, the path toward testing the symbolic $100,000 mark by the end of the year appears increasingly clear.