Reports of Bitcoin’s decline appear to have been greatly exaggerated. The digital asset, which slipped below key support levels in November, is witnessing a powerful resurgence of market confidence. This recovery is being driven not by retail speculation, but by a dramatic strategic reversal from two of the world’s most influential financial institutions—a shift that could redefine the landscape by 2026. Is the cryptocurrency on the cusp of its next major breakout?
Monetary Tailwinds Return
Significant support is now emerging from monetary policy. A crucial headwind for risk assets has been removed with the Federal Reserve’s official termination of its quantitative tightening (QT) program effective December 1. This marks the end of a substantial liquidity drain that weighed heavily on markets during the third quarter.
Analysts interpret this development as a clear signal. The anticipated return of global liquidity is pushing investors back toward Bitcoin as a potential hedge against renewed monetary expansion. This thesis is supported by concrete data: Bitcoin ETFs have recorded five consecutive days of positive inflows, gathering an average of approximately $58.5 million per day.
Wall Street’s Strategic Capitulation
The most potent fuel for the current rebound originates unexpectedly from traditional finance. Vanguard, the world’s second-largest asset manager and a longstanding critic of cryptocurrency products, has abandoned its resistance. The firm is now granting its 50 million clients access to Bitcoin spot ETFs, effectively opening a massive gateway for institutional liquidity.
Should investors sell immediately? Or is it worth buying Bitcoin?
In a nearly simultaneous development, reports indicate Bank of America is altering its approach. Starting in January 2026, the bank’s advisors are expected to receive official clearance to recommend a crypto allocation of one to four percent within client portfolios. This fundamental change in stance is already generating buying pressure, as investors attempt to position themselves ahead of the anticipated capital flows in the new year—a practice known as “front-running.”
Technical Positioning for a Breakout
From a chart perspective, Bitcoin’s price has stabilized following recent volatility. The psychologically significant $90,000 level, which analysts at JPMorgan suggest aligns closely with current mining costs, is serving as a reliable soft floor.
Currently trading at $92,932.00, Bitcoin is gathering momentum for its next move. Traders are now focused intently on the resistance zone near $94,000. A decisive break above this barrier could potentially trigger a short squeeze, forcing traders who bet against the price to cover their positions and potentially propelling the value toward $98,000. The confluence of growing institutional acceptance and a looser monetary policy backdrop is creating a potent mix for a potential year-end rally.
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