Earlier today, the bitcoin price hovered around $92,000 but has since retreated to near $90,000, showcasing ongoing volatility even after the U.S. Federal Reserve implemented a 25-basis-point rate cut.
After a brief surge above $93,000 yesterday, the cryptocurrency dipped below $90,000 and then stabilized around $90,600 at the time of this report.
This decrease comes amidst mixed signals from the Fed. While the rate cut to 3.50%–3.75% was largely expected, the cautious comments from Fed Chair Jerome Powell and a split vote of 9–3 among FOMC members—one member advocating for a larger 50-basis-point cut and two opposing any reductions—dampened enthusiasm for risk assets such as BTC.
Analysts characterized the drop as a “sell the fact” response, given that markets had already anticipated this move.
Additionally, Vanguard Group has started permitting clients to trade spot Bitcoin exchange-traded funds (ETFs), signifying a significant increase in access to crypto products for the $12 trillion asset manager’s clientele.
Nevertheless, Vanguard’s senior executives reiterated their skeptical view of BTC and other cryptocurrencies.
John Ameriks, Vanguard’s global head of quantitative equity, stated at Bloomberg’s ETFs in Depth conference that Bitcoin is more accurately regarded as a speculative collectible rather than a productive asset.
Ameriks likened it to a trendy plush toy, noting that BTC lacks income, compounding potential, and cash-flow generation—the essential characteristics Vanguard seeks in long-term investments.
“Without clear evidence that the underlying technology provides lasting economic value, it’s hard for me to regard Bitcoin as anything more than a digital Labubu,” he remarked, according to Bloomberg.
Despite this cautious perspective, Vanguard’s decision to enable trading of BTC ETFs on its platform was influenced by the improved record of such products since the launch of the first BTC ETF in January 2024.
Ameriks mentioned that the firm aims to guarantee these ETFs accurately represent their stated holdings and deliver expected performance.
Banks engaging with bitcoin
This week, PNC Bank became the first significant U.S. bank to offer direct spot bitcoin trading through its digital platform to eligible Private Bank clients, utilizing Coinbase’s Crypto-as-a-Service infrastructure.
This launch follows a strategic alliance announced in July and reflects a growing movement among U.S. banks to incorporate bitcoin into their wealth management offerings.
Additionally, last week, the Bank of America recommended its wealth management clients allocate between 1% and 4% of their portfolios to digital assets, indicating a major shift in its stance on Bitcoin exposure.
Currently, Bitcoin is trading at about $90,115.85, with a circulating supply of nearly 19.96 million BTC and a market cap of $1.81 trillion.
Prices have shown modest fluctuations over the past week, reflecting the increased volatility in the broader market.
