Bitcoin Surges Past $90K Following Vanguard ETF Access and Fed's QT Conclusion

On Tuesday, December 2, 2025, the price of Bitcoin (BTC) staged a powerful comeback, decisively breaking the $90,000 threshold and erasing recent market declines. This significant upward movement was mirrored across the broader crypto market; Ethereum (ETH) climbed over 9% to trade above $3,000, while altcoins such as XRP, SOL, and DOGE saw gains ranging from 7% to 10%. This rally provided welcome relief after the preceding Sunday and Monday saw BTC briefly dip below $84,000, fueling market anxiety regarding liquidity sustainability and the strength of the ongoing trend.

A major institutional catalyst emerged from Vanguard, the asset manager overseeing $11 trillion. Effective December 2, 2025, Vanguard revised its policy to permit clients of its U.S. brokerage division to trade third-party digital asset ETFs. This crucial policy shift immediately opened the door to regulated crypto products for roughly 50 million clients, marking a substantial departure for the firm, which had previously steered clear of highly volatile crypto offerings. Coinciding with this institutional development, macroeconomic conditions improved significantly after the Federal Reserve (Fed) officially concluded its Quantitative Tightening (QT) program on December 1, 2025.

The cessation of liquidity withdrawal from the financial system—which had shrunk by approximately $2.2 trillion from its peak—bolstered market expectations for a potential Fed rate cut in December. Current market assessments place the probability of such a cut as high as 93%. This confluence of positive regulatory access and monetary policy easing provided strong tailwinds for the cryptocurrency sector.

The price surge was accompanied by a sharp contraction in short positions. Approximately $250 million worth of BTC shorts were liquidated, contributing to a total short liquidation volume exceeding $400 million as the price jumped from the mid-$88,000 range to levels above $93,000. Technically speaking, the market has now established firm support in the $86,000 to $88,000 zone. Resistance levels are currently pegged at $92,500 and $94,000, with the latter being a critical hurdle to maintain momentum toward the psychological $100,000 mark before the close of 2025.

Institutional adoption continues to gain serious traction. Bank of America has now authorized its wealth managers to suggest that clients allocate between 1% and 4% of their portfolios toward spot Bitcoin ETFs. Formal coverage for products from BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), and Grayscale (BTC) is slated to commence on January 5, 2026. Chris Hysie, Investment Director for the Private Bank, commented that this allocation range is suitable for clients comfortable with elevated volatility, emphasizing the focus on these newly regulated investment vehicles.

Despite the prevailing optimism, external uncertainties remain on the radar. Mark Connors of Risk Dimensions issued a caution regarding potential capital outflows from global markets should Japanese 10-year yields continue their upward trajectory, which could subsequently exert downward pressure on cryptocurrencies. Meanwhile, analysts like Jasper De Maeyer from Wintermute noted that BTC derivatives are exhibiting a clear bullish skew coupled with suppressed volatility, reinforcing the $80,000–$85,000 support band. Furthermore, the Crypto Fear & Greed Index, having previously registered at 23, indicates a clear retreat from extreme fear territory, reflecting a tangible restoration of market confidence following the recent sell-off.