Crypto markets staged a major turnaround on Tuesday as traders reacted to rising expectations of US interest-rate cuts and a surge in spot Bitcoin ETF activity following Vanguard’s decision to end its ban on Bitcoin ETF purchases.

The move revived demand across the digital-asset complex after a volatile start to December.

Bitcoin climbed back above $91,000, rising roughly 8% over the past 24 hours. Ether recovered the $3,000 level after a 10% jump.

Other major altcoins are also surging, with Cardano (ADA) leading the pack with a massive 14.58% jump to $0.4301, followed closely by Solana (SOL), which rose 12.03% to $139.53.

Rounding out the bullish price action, XRP has advanced 8.73% to reach $2.17, while Dogecoin (DOGE) posted double-digit gains of 10.05% to trade at $0.1464.

Total crypto market capitalisation rose to $3.06 trillion, regaining ground after briefly falling below $3 trillion during Sunday night’s risk-off decline.

Bitcoin’s sharp intraday rally forced $157 million in short liquidations, with more than $312 million cleared across all crypto derivatives in the past day, according to Coinglass.

Bloomberg Intelligence analyst Eric Balchunas said Bitcoin’s rally was closely tied to renewed ETF buying pressure in the United States.

He noted that the surge began almost exactly when US markets opened — the first trading session in which Vanguard customers regained access to spot bitcoin ETFs.

THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not. Also $1b in IBIT volume in first 30min of trading. I knew those Vanguardians had a little degen in them, even some of the most conservative investors

“Bitcoin jumps 6% right around the US open on the first day after the ban lifted. Coincidence? I think not,” Balchunas wrote on X, pointing out that BlackRock’s IBIT notched $1 billion in trading volume in the first 30 minutes alone.

The policy reversal at Vanguard coincided with another shift in the wealth-management industry.

Bank of America reportedly informed advisers across Merrill, the Private Bank and Merrill Edge that clients may now allocate 1% to 4% of portfolios to crypto — removing a long-standing restriction that prevented more than 15,000 advisers from proactively recommending digital-asset products.

Bitcoin’s recovery follows a rocky start to December.

The digital asset fell below $84,000 on Monday and lost around 8% in the day’s selloff, marking a sharp reversal after rebounding from levels near $80,000 late last week.

The abrupt decline caught traders off guard, especially with risk appetite improving across equities in late November.

Renewed confidence in Fed easing — with traders now assigning high odds to a rate cut in December — combined with a fresh wave of ETF accessibility appears to have restored momentum in the short term.

For now, the sector is attempting to stabilize after early-month turbulence, with both macro and structural shifts driving renewed investor interest in digital assets.

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