The rebound followed the Federal Reserve's decision to halt its Quantitative Tightening (QT) program and inject liquidity into the markets, boosting short-term financial stability.
Despite these headwinds, analysts believe macro liquidity from the Fed pivot could act as a stabiliser if capital rotation resumes toward large-cap cryptocurrencies
Calling volatility "vitality," Saylor argued that Bitcoin's sharp price swings are essential to its long-term performance and the opportunity it creates for investors
A rapid reversal in sentiment, macroeconomic uncertainty, heavy liquidations and sharp ETF outflows have erased $1.2 tn from crypto markets, pulling Bitcoin off record highs and unsettling investors
BTC price today: Analysts attribute the slide to uncertainty around potential US interest-rate cuts, broader weakness across equity markets, and profit-taking by large holders
The development, analysts said, suggests investors are temporarily favouring policy-linked assets, with risk appetite split between safe-haven and cyclical exposures
Stablecoins are digital currencies that stay steady in value, unlike volatile cryptocurrencies such as Bitcoin. Their prices are linked to stable assets like gold or currencies
As the global dominance of dollar-backed stablecoins rises, crypto leaders say India should act swiftly to protect its monetary sovereignty by introducing an INR-backed stablecoin
The overall tone of crypto markets, analysts said, remains neutral, with the Fear & Greed Index steady at 42 - indicating reduced panic and improving investor confidence
The broader altcoin market mirrored the weak sentiment, with Story (IP) continuing its sell-off to emerge as the day's biggest laggard, plunging 28 per cent
Despite the volatility, analysts suggest this correction is not a sign of fundamental weakness, but rather a leverage flush, a natural reset following an extended rally
BTC dominance has slipped to 57.3 per cent, while the CMC Altcoin Season Index has climbed to 62/100, which analysts suggest are early signs of capital rotation into altcoins
Analysts suggest the muted price action reflects investor caution ahead of the upcoming US CPI release, which could influence the Fed's next policy decision
Market analysts attributed the renewed bullish sentiment to significant inflows into spot Bitcoin ETFs, which registered $333 million in net investments in a single day