The Vanguard Effect: Bitcoin Rebounds Sharply Above $90,000

The price of Bitcoin (BTC) has made a sharp reversal, once again surpassing the $90,000 mark. According to CoinMarketCap, the asset has risen by $6,000 in the past 24 hours, marking a significant event in the cryptocurrency market. The sudden surge was accompanied by massive short liquidation—nearly $140 million in the past hour, according to Coinglass.

"The Vanguard Effect"

Bloomberg senior ETF analyst Eric Balchunas attributed the cryptocurrency's rapid rise to what he called the "Vanguard effect." According to him, the asset jumped 6% immediately after the US market opened. Balchunas believes this is not a coincidence, but rather the result of the lifting of the ban on Bitcoin ETF trading on Vanguard, which was announced on December 2.

"IBIT saw $1 billion in volume in the first 30 minutes of trading." "Even Vanguard's most conservative clients like to add a little spice to their portfolio," Balchunas noted. He also admitted that he didn't expect Vanguard to include Bitcoin's rescue in his "2025 bingo card."

Traders Capitulate Amid Crypto Winter Signals

Amid institutional euphoria, on-chain analysts at CryptoQuant have recorded that spot Bitcoin traders are in the "record pain zone" of this cycle. "For two weeks now, this category of investors has been recording losses in the range of 20% to 25%," CryptoQuant reported. This, they believe, clearly reflects behavior characteristic of capitulation.

Forecasts and Contrasting Opinions

The contrast in the current situation is heightened by sharply bearish forecasts. TradingBitcoin analysts believe Bitcoin could bottom at $25,000, but "sometime in 2026." They believe the decline reflects the historical behavior of the leading cryptocurrency and occurs within a 1420-1450-day cycle.

Nevertheless, Grayscale predicted a new all-time high (ATH) for Bitcoin in 2026, adding to investor optimism.

In Conclusion

Bitcoin's sharp rise above $90,000, driven by the "Vanguard effect," highlights the dynamism and unpredictability of the cryptocurrency market. Despite the current euphoria, analysts are divided, and investors should remain alert to potential risks. Time will tell whether Bitcoin can hold its position or face new challenges in the future.