The cryptocurrency market is facing one of its steepest crashes in recent times. Bitcoin (BTC) has dipped below the $97,000 mark, a price level last traded at in May, six months ago. CoinGecko BTC data shows that Bitcoin has fallen 6.1% in the last 24 hours, 4.6% in the last week, 12% in the 14-day charts, and 14.4% over the previous month. BTC has maintained only 6.3% growth since November 2024. Let’s discuss when Bitcoin (BTC) could rebound from its latest price crash.
Will Bitcoin Recover From Its Price Crash This Month?
According to CoinGlass data, the crypto market saw $1.11 billion worth of liquidations in the last 24 hours. The cryptocurrency market has seen substantial liquidations over the last month. October, a historically bullish month, saw the most significant single-day liquidation in crypto history. Bitcoin’s (BTC) falling price reflects the ongoing liquidations.
The market crash is likely due to a host of factors. Firstly, the chance of another interest rate cut from the Federal Reserve has diminished substantially. Although the Fed reduced rates by an additional 25 basis points in October, Chair Jerome Powell had some start warnings in his speech last month. Bitcoin (BTC) and the larger crypto market are likely suffering due to the bearish global economy. Slow economic growth and rising inflation have led to a substantial rise in investor worry.
Moreover, Bitcoin (BTC) and Ethereum (ETH) ETFs have seen a large dip. According to Cointelegraph, Bitcoin (BTC) ETFs saw $866.7 million in outflows, while Ethereum (ETH) saw $259.6 million in outflows. ETFs have played a major role in the current market cycle, and outflows seem to have directly affected the market.
Bitcoin (BTC) will likely rebound over the coming month, as low prices could attract investors. Many financial institutions could buy the dip, and BTC’s price could see a steady recovery.