Bitcoin returns to $93,000, SOL, ADA, and XRP surge over 12%: Can the deleveraging rebound continue?

After experiencing significant turbulence, the cryptocurrency market has seen a strong rebound. On Wednesday, Bitcoin (BTC) broke back above the $93,000 mark, with major large-cap tokens rallying in tandem—SOL, ADA, and XRP all posted gains of over 12%. This round of gains partially recovered losses from nearly $500 million in liquidations on Monday.

In the past 24 hours, the derivatives market saw a massive wave of short liquidations totaling $457 million, including $224 million in BTC liquidations and $94 million in ETH liquidations. This round of liquidations significantly deleveraged the market, paving the way for the price rebound and providing a brief respite from sustained downward pressure.

As of early Asian trading, Bitcoin had risen more than 7% to around $93,360, while Ethereum rebounded over 9%, climbing back above $3,000. Leading tokens such as Solana, Cardano, and XRP all rallied, with the market cap sector broadly recovering.

Positive news is also supporting the market rebound. U.S. SEC Chairman Paul Atkins revealed that institutions are advancing an “innovation exemption” regulatory framework in the digital asset sector, injecting confidence into a previously lackluster policy environment. Meanwhile, Vanguard announced the opening of cryptocurrency ETF and related fund trading on its platform, further improving market sentiment.

Nevertheless, this rebound is still regarded as a “relief rally” rather than a trend reversal. Market depth has yet to recover, and whether spot buying can take over remains key. Monday’s sell-off, combined with weekend liquidity constraints and macroeconomic uncertainty, triggered extreme volatility. The market is still digesting structural pressures such as ETF pullbacks, corporate balance sheet risks, and MSCI methodology reviews.

As the derivatives market gradually completes its liquidation cycle, the next thing to watch is whether spot demand is sufficient to sustain the rally. If buying interest fails to keep up, the market may return to a state of high volatility. (CoinDesk)