Bitcoin rebounded above $93,000 on Wednesday as the broader crypto market staged a sharp recovery, clawing back some of the steep losses that triggered nearly $457 million in liquidations on Monday. The rebound provided temporary relief after a volatile start to the week, though lingering structural concerns continue to weigh on sentiment.

BTC climbed more than 7% over the past 24 hours, trading near $93,360 in Asian morning hours, partially reversing the heavy selling that pushed the cryptocurrency below $84,000 at the start of the week. Ether surged over 9% to reclaim the $3,000 level, while Solana, Cardano, XRP, and other major altcoins posted double-digit gains—SOL and ADA each jumping more than 12%.

The upswing followed a sharp washout in derivatives markets, where roughly $457 million in short positions were liquidated in the last 24 hours. Bitcoin accounted for $224 million of these liquidations, while Ether added $94 million, according to Coinglass data. The shakeout helped clear a significant portion of leveraged positions that had built up during the prior decline.

Despite the rebound, sentiment remains cautious. Bitcoin’s early-week selloff coincided with thin weekend liquidity and spillover from macroeconomic jitters, creating heightened volatility. The market is also digesting concerns over corporate balance-sheet exposures, including sharp drawdowns in strategy-linked ETFs and the pending MSCI methodology review, both of which have dampened risk appetite in recent sessions.

Tuesday’s gains were supported by incremental catalysts. Optimism grew after U.S. SEC Chairman Paul Atkins indicated the agency would outline a proposed “innovation exemption” for digital-asset firms, signaling potential regulatory clarity after months of policy stagnation. Vanguard’s decision to allow trading of crypto-focused ETFs and mutual funds on its platform further boosted market sentiment after a prolonged stretch of outflows.

Still, analysts note that the rebound appears largely a relief rally rather than a trend reversal. Market depth remains uneven, and many large-cap tokens are recovering from multi-week lows. The next key test will be whether spot-market demand can sustain the move once derivatives markets stabilize following the liquidation cycle.