Bitcoin Bitcoin prices surged above $90,000 in early U.S. trading on Tuesday, erasing most of the losses from Sunday to Monday below $84,000. The largest cryptocurrency was last trading at $91,180, up 8% in the past 24 hours, helping to boost the broader digital asset market.
Ethereum’s Ethereum It rebounded above $3,000, up 9% over the same period. Large-cap altcoins followed suit: Solana’s SOL , Up 7%–10%, recovering from recent lows.
Vanguard, the $11 trillion asset management giant, has dropped its long-running fatwa against cryptocurrencies and will now allow its clients to use digital asset ETFs, bringing in gains. Next door is Bank of America Already agreed Its wealth manager recommends allocating 1%-4% to spot Bitcoin ETFs.
Analysts warn that Japan yield shock could hit Bitcoin hard
Mark Connors, founder and chief macro strategist of Bitcoin investment advisory firm Risk Dimensions and former head of global risk advisory at Credit Suisse, warned that a rise in Japan’s 10-year government bond yields could pull capital out of global markets, with cryptocurrencies – especially Bitcoin – being hardest hit due to their proximity to Asian capital flows and leverage risks. Binance, which handles nearly half of all cryptocurrency trading volume and allows up to 50x leverage, is particularly vulnerable to fluctuations in the Japanese yen and Chinese yuan.
Connors also noted that Bitcoin appears to be leading the S&P 500 lower. This pattern is likely to continue until the Federal Reserve and Bank of Japan hold policy meetings later this month. If markets weaken further, he expects some form of intervention, as has often happened in times of stress in recent years.
However, not all signs point to weakness. Jasper De Maere, desk strategist at Wintermute, said Bitcoin derivatives showed “a clear bias toward bullish, short volatility behavior.” Traders are selling downside puts near the $80,000 to $85,000 levels while selectively buying calls further out.
“This combination suggests that the market sees $80,000 to $85,000 as support and is willing to take long-term profits through the end of the year while continuing to make profits,” Demel said. In other words, despite recent pressures, traders appear poised for a recovery.
Read more: Walking on Thin Ice: Crypto Diary of the Americas
