Bitcoin was largely flat on Thursday after rebounding strongly above $93,000 in the previous session, supported by positive regulatory developments and expectations of an interest rate cut by the Federal Reserve next week.
The world's largest cryptocurrency was trading down 0.3% at $93,140.6 by 10:56 AM Saudi time.
This stability comes after a brutal sell-off earlier in the week that pushed the world's largest cryptocurrency to near the $84,000 level.
The recovery was bolstered by positive regulatory developments in the United States. Statements by SEC Chairman Paul Atkins—indicating that the agency plans to introduce an innovative exemption designed for digital asset companies—helped restore investor confidence in the broader regulatory framework for cryptocurrencies.
Meanwhile, asset management firm Vanguard has reversed its previous ban on cryptocurrency-linked exchange-traded funds (ETFs), now allowing its clients to trade third-party cryptocurrency ETFs and mutual funds on its brokerage platform.
This move has attracted new institutional interest and boosted expectations of renewed capital inflows into Bitcoin.
The macroeconomic background provides support.
Growing expectations that the Federal Reserve will cut interest rates at its next meeting next week have given an additional boost to high-risk assets, including Bitcoin.
In addition, liquidity conditions improved after the Federal Reserve ended its quantitative tightening program on December 1 and resumed large-scale repurchase operations, injecting new money into the financial system.
The violent swing from below $84,000 to above $93,000 reflects a fragile market structure, with forced short positions being liquidated, which exacerbates volatility.
Cryptocurrency prices today: Altcoins maintain their optimism, and Ethereum jumps by more than 4%
Most alternative currencies rose on Thursday but traded in narrow ranges amid a more cautious mood.
Ethereum, the world's second-largest cryptocurrency, jumped 4.6% to $3,210.14.
The third largest cryptocurrency, XRP, fell 0.6% to $2.18.
Solana rose 1% and Cardano added 2%, while Polygon fell 0.9%.
Among the meme currencies, both Dogecoin and $TRUMP remained virtually unchanged.
