Crypto market rebounds above $3 trillion as ‘Vanguard effect’ jolts ETF flows and Fed cut odds jump
The crypto market surpassed $3 trillion, driven by Vanguard lifting its ETF ban and increased odds of Federal Reserve rate cuts.Summary
The cryptocurrency market rebounded, pushing total capitalization above $3.06 trillion, fueled by two major developments. First, Vanguard lifted its long-standing ban on spot bitcoin ETF purchases for its clients, leading to significant trading volume, which Bloomberg Intelligence analyst Eric Balchunas linked directly to a surge in Bitcoin's price around the U.S. market open. Concurrently, Bank of America reportedly allowed its advisers to allocate 1%–4% of client portfolios to crypto, ending previous restrictions. Second, traders are now pricing in a much higher probability of Federal Reserve rate cuts, with CME FedWatch showing an 87.2% chance of a 25-basis point cut in December, boosting risk assets like crypto. Other market movers included strong gains in Cardano, Solana, and Chainlink, the latter benefiting from the launch of Grayscale’s new Chainlink ETF (GLNK). Separately, SEC Chairman Paul Atkins indicated that the agency expects to move forward with delayed crypto rulemaking, including an “innovation exemption,” within about a month.
(Source：The Block)