Bitcoin Rebounds Above $93K as Crypto Markets Recover After Massive Liquidations

Bitcoin climbed back above $93,000 on Wednesday as the broader crypto market staged a notable rebound, recovering from Monday’s sharp downturn that triggered nearly half a billion dollars in liquidations. The bounce offered some relief to traders after a turbulent start to the week, though confidence remains fragile following recent structural shocks across the digital-asset landscape.

Over the past 24 hours, Bitcoin surged more than 7%, trading around $93,360 during Asian hours. Ether followed with a jump of over 9%, reclaiming the $3,000 mark. Major altcoins including Solana, Cardano, and XRP posted strong double-digit gains, with SOL and ADA each rising more than 12%. The rally coincided with a major derivatives reset, as roughly $457 million in short positions were liquidated, according to Coinglass. Bitcoin shorts accounted for $224 million of that total, while Ether contributed another $94 million. The washout significantly reduced excessive leverage that had accumulated during the recent selloff.

Despite the upward momentum, market sentiment remains cautious. Bitcoin’s plunge below $84,000 earlier in the week was exacerbated by thin weekend liquidity and macro-driven volatility, conditions that amplified market swings. Investors are still evaluating concerns tied to corporate balance-sheet exposure, sharp drawdowns in strategy-linked ETFs, and the looming MSCI methodology review—factors that have pressured risk appetite.

Tuesday’s rebound was supported by several positive developments. U.S. SEC Chairman Paul Atkins signaled that the agency is preparing to outline a framework for a proposed “innovation exemption” aimed at digital-asset firms, a move viewed as progress toward long-awaited regulatory clarity. Meanwhile, Vanguard’s decision to allow trading of crypto-focused ETFs and mutual funds helped bolster sentiment after extended outflows.

Even so, the structure of the recovery suggests a relief rally rather than a confirmed trend reversal. Market depth remains uneven, and many major tokens are still climbing back from multi-week lows. The key question now is whether spot demand can sustain the upward move once derivatives markets finish adjusting after the liquidation cycle.