Bitcoin Rebounds as crypto markets try to steady themselves after a volatile few days, with BTC climbing back above the $90,000 mark on Tuesday. This recovery follows a brief dip below the key support level earlier in the session, which had sparked concerns about the possibility of another sharp downturn.
At the time of writing, Bitcoin is trading around $91,798, recovering from an intraday low of $89,455 as buyers stepped back in. The rebound arrives after a massive shakeout that wiped out over $1 billion in leveraged positions and erased much of the excitement from the post-election rally that had sent BTC to $126,000 just six weeks ago.
Altcoins, however, haven’t bounced back with the same strength. Ethereum (ETH) is hovering near $3,072, Solana (SOL) trades close to $139, and XRP is holding around $2.18 — all sitting near crucial support zones.
Despite the turbulence, the broader crypto market cap has stabilized at about $3.23 trillion, up roughly 1.4% in the last 24 hours after plunging more than $1.2 trillion from recent highs.
Why the Market Dropped
The sharp downturn of recent weeks didn’t come from a single trigger — instead, multiple pressures stacked up at once.
The Federal Reserve’s cautious stance on interest rates has kept liquidity tight, with markets now assigning just a 40–50% chance of a December rate cut. Lack of liquidity tends to hit riskier assets first, and crypto felt the impact.
The market also had to absorb major outflows from crypto ETFs. Bitcoin ETFs recorded $870 million in redemptions on Nov. 14 — the largest single-day outflow since February. Total BTC ETF outflows crossed $1.1 billion last week, while Ethereum ETFs saw more than $700 million pulled out.
There were brief signs of relief on Nov. 18, when BTC ETFs brought in $150 million in inflows and ETH ETFs added another $90 million, but the broader trend has remained weak.
Adding to the pressure, Bitcoin recently confirmed a bearish “death cross”, breaking under $90,000 and triggering a cascade of forced selling. More than $20 billion in leveraged positions have been liquidated since early November. Liquidity concerns tied to the U.S. government shutdown and ongoing quantitative tightening also weighed heavily on sentiment.
Meanwhile, whales have been taking profits, retail trading activity has slowed, and stablecoin supply growth has stagnated. Long-term holders sold more than 800,000 BTC over the last month, and over 65,000 BTC flowed to exchanges at a loss.
What Comes Next?
Despite the chaos, analysts say the market pullback looks more like a mid-cycle correction than the beginning of a full bear market. Historically, 20–30% dips have been common during bull phases.
In the coming weeks, Bitcoin’s direction could hinge on macro data such as non-farm payrolls and CPI reports. Longer-term, factors like the end of quantitative tightening, rising Treasury spending, and fast-growing interest in blockchain-AI integrations could help BTC retest its all-time highs by year-end.
For now, the market remains at a critical turning point. If Bitcoin holds above $90,000, traders believe it could resume its upward climb. But a drop below $88,000 risks triggering another wave of liquidations that might drag BTC toward the $80,000–$85,000 zone.
Investors are watching closely — with equal parts caution and optimism — as the next major move takes shape.
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