Earlier today, Bitcoin’s price was trading within the $92,000 range; however, it has since declined toward $90,000, illustrating ongoing volatility despite the U.S. Federal Reserve’s recent 25-basis-point rate reduction.

After a brief surge above $93,000 yesterday, the cryptocurrency fell below the $90,000 mark and has stabilized around $90,600 at the time of this report.

This retrenchment occurs against a backdrop of mixed signals from the Federal Reserve. Although the anticipated rate cut to a range of 3.50%–3.75% was widely expected, Fed Chair Jerome Powell’s cautious statements and the 9–3 vote among FOMC members—where one member advocated for a more substantial 50-basis-point cut and two opposed any reduction—have tempered enthusiasm for risk assets, including Bitcoin.

Analysts have characterized the downturn as a “sell the fact” response, as markets had largely priced in the anticipated move.

In a significant development, Vanguard Group has commenced allowing its clients to trade spot Bitcoin exchange-traded funds (ETFs). This represents a key expansion of access to cryptocurrency products for investors associated with the $12 trillion asset management firm.

Nonetheless, the organization’s senior leadership has reiterated a skeptical stance on Bitcoin and other cryptocurrencies. John Ameriks, Vanguard’s global head of quantitative equity, remarked during Bloomberg’s ETFs in Depth conference that Bitcoin is more accurately regarded as a speculative collectible rather than a productive asset.

In his comparison, Ameriks likened Bitcoin to a viral plush toy, noting that it lacks essential characteristics such as income, compounding potential, and cash flow generation—attributes Vanguard prioritizes in long-term investments. He stated, “Absent clear evidence that the underlying technology delivers durable economic value, it’s difficult for me to think about Bitcoin as anything more than a digital Labubu,” as quoted by Bloomberg.

Despite this cautious perspective, Vanguard’s decision to permit trading of Bitcoin ETFs on its platform was influenced by the improving track record of such financial products since the inaugural Bitcoin ETF launched in January 2024. Ameriks indicated that the firm aims to ensure these ETFs accurately represent their advertised holdings and perform as anticipated.

Banks Engaging with Bitcoin

Earlier this week, PNC Bank became the first major U.S. bank to offer direct spot Bitcoin trading to eligible Private Bank clients through its digital platform, utilizing Coinbase’s Crypto-as-a-Service infrastructure. This launch follows a strategic partnership announced in July and reflects a growing trend among U.S. banks to incorporate Bitcoin into their wealth management services.

Additionally, the Bank of America recently advised its wealth management clients to allocate between 1% and 4% of their portfolios to digital assets, indicating a significant shift in its approach toward Bitcoin exposure.

As of today, Bitcoin is trading at approximately $90,115.85, with a circulating supply of nearly 19.96 million BTC and a market capitalization of $1.81 trillion. The price has experienced modest fluctuations over the past week, mirroring the broader market’s volatility.

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