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.
Bitcoin shed more than $18,000 in November, as a record amount of money rushed out of the market, making this its largest dollar loss since May 2021, when a number of cryptocurrencies collapsed
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
Crypto Market Crash: Analysts say the pullback reflects a consolidation phase rather than market capitulation, as participants digest recent selling pressure and await clearer macroeconomic signals
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
The overall market sentiment remains dominated by fear, with the CoinMarketCap Crypto Fear and Greed Index registering at 27, firmly in the "fear" zone
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 surge comes amid sustained institutional inflows, as investors grow increasingly optimistic about potentially supportive signals from the US Federal Reserve
The crypto market rally aligns with historical trends. October, often called 'Uptober' in the crypto space, has traditionally been bullish, with Q4 typically delivering strong gains
The original cryptocurrency has long been referred to as "digital gold" by advocates, who see it serving a similar role as the precious metal during times of turmoil