SOL, ADA, XRP Surge 12% as Bitcoin Claws Back Above $93K, But Sustainability Remains in Question

Bitcoin bounced back above $93,000 on Wednesday as the broader crypto market staged a strong recovery, recovering part of the losses that triggered nearly $457 million in liquidations earlier this week. While the rebound offered some relief after a turbulent start to the week, lingering structural risks continue to weigh on sentiment.

BTC gained over 7% in the past 24 hours, trading near $93,360 during Asian morning hours, reversing some of the sharp selling that drove prices below $84,000 on Monday. Ether climbed more than 9% to surpass the $3,000 mark, while Solana, Cardano, XRP, and other major altcoins posted double-digit gains—SOL and ADA each up more than 12%.

The recovery followed a sharp shakeout in derivatives markets, where approximately $457 million in short positions were liquidated over the past 24 hours. Bitcoin alone accounted for $224 million of the total, with Ether adding another $94 million, according to Coinglass data. The liquidation helped clear significant leveraged positions that had accumulated during the recent downturn.

Despite the bounce, caution remains. Bitcoin’s selloff earlier in the week coincided with thin weekend liquidity and spillover effects from macroeconomic concerns, creating a volatile backdrop. The market is also grappling with worries over corporate balance-sheet exposure, including steep declines in strategy-linked ETFs and an upcoming MSCI methodology review, which have weighed on risk appetite.

Tuesday’s uptick was supported by a few incremental catalysts. Optimism surged after SEC Chairman Paul Atkins indicated the agency would provide clarity on a proposed “innovation exemption” for digital-asset firms—a move seen as a potential step toward regulatory clarity. Vanguard’s decision to allow trading of crypto-focused ETFs and mutual funds on its platform also helped boost sentiment after weeks of outflows.

Analysts caution, however, that the current rebound may be primarily a relief rally rather than a genuine trend reversal. Market depth remains uneven, and several large-cap tokens are recovering from multi-week lows. The key question now is whether spot-market demand can maintain momentum once the derivatives markets stabilize following the recent liquidation cycle.