- Bitcoin reclaimed $90,000 during U.S. market hours, breaking recent selloff patterns.
- Strength in metals and dovish Fed comments helped support the move.
- Data suggests the rally was driven by short covering, not new leverage.
Crypto prices caught traders off guard on Wednesday, spiking higher just after U.S. equities opened for the day. Bitcoin surged back above the $90,000 level for the first time since last weekend, defying the recent pattern of selloffs during the U.S. market session. The move stood out not because of its size alone, but because of its timing, when many had braced for another drawdown.
Metals Rally Adds a Macro Tailwind
One possible catalyst behind the move came from traditional markets, where metals posted sharp gains. Silver jumped nearly 5%, pushing to a fresh record above $66 per ounce, while gold and copper each climbed more than 1%. The strength across hard assets appears to be reinforcing a broader narrative around inflation protection and real-value stores, a theme that often spills over into crypto during periods of uncertainty.
Dovish Fed Signals Enter the Conversation
Momentum also picked up after comments from Federal Reserve Governor Chris Waller, who is now leading prediction markets as the potential next Fed chair. Waller suggested the neutral federal funds rate may sit 50 to 100 basis points below current levels, signaling room for easier policy. He also noted the U.S. is hovering near zero jobs growth and said he doesn’t expect inflation to reaccelerate, comments that markets interpreted as notably dovish.
Short Covering, Not Fresh Leverage
According to Coinglass data, the rally appears driven more by positioning than speculation. Bitcoin open interest fell from roughly 669,000 BTC to 665,000 BTC even as prices moved higher. That dynamic points to short covering rather than new leveraged longs entering the market. In other words, traders betting against BTC were forced out, creating a classic delveraging rally instead of a momentum-fueled breakout.
A Small Move With Outsized Significance
Bitcoin is now up about 3% over the past 24 hours, a modest gain on paper. Still, after weeks of conditioning that saw prices fade during U.S. trading hours, even stability feels notable. If this pattern shift holds, it could signal changing market structure rather than just another temporary bounce.
