The crypto market is showing renewed strength after a dramatic shakeout earlier, with major tokens recovering from steep declines triggered by liquidations, macroeconomic pressures, and political uncertainty. Bitcoin, which briefly slipped below $90,000 for the first time in seven months, has rebounded toward the $93,000 level as overall market sentiment steadies. At press time, Bitcoin was trading around $91,000. The global crypto market capitalization is up 1.3%, reaching $3.23 trillion, reflecting a broader return to risk assets after a turbulent morning. Bitcoin recovers following heavy liquidations Bitcoin’s slide to $89,000 earlier in the session sparked significant volatility, wiping out more than $620 million in leveraged positions over 24 hours. Analysts attribute the plunge to forced liquidations combined with investors pulling back from riskier assets amid wider market weakness. The move mirrored a sell-off in AI-linked tech equities, suggesting traders were responding to heightened macro uncertainty and shifting toward a “risk-off” posture. Despite the abrupt drop, Bitcoin stabilized quickly. At the time of writing, Bitcoin was trading near $91,640, up by 1.7% in the last 24 hours as dip buyers stepped in and derivatives markets reset after the liquidation wave. Market participants note that while volatility remains elevated, Bitcoin’s ability to rebound underscores the resilience of investor interest, even in the face of macro-driven pressure and regulatory speculation. Altcoins bounce as market sentiment improves The rebound in the crypto market extended beyond Bitcoin. Ethereum is trading near $3,071 after a roughly 1.8% gain over the past day. XRP has also moved higher, climbing more than 1.5% to around $2.18. XRP’s performance follows strong demand for the newly launched US spot XRP ETF, which recorded nearly $60 million in first-day trading volume, the highest opening for any ETF this year. Other major altcoins, including Solana, Cardano, Dogecoin, and BNB, also turned positive following the morning turmoil. The swift recovery across large-cap tokens suggests that earlier selling pressure was driven more by liquidations and short-term uncertainty than a fundamental shift in investor appetite. Macroeconomic pressures and regulatory concerns drive volatility According to analysts, several factors drove the initial downturn. Markets broadly weakened as investors pulled out of speculative tech names and crypto assets. Political tension added an additional layer of uncertainty after US senators called for an investigation into World Liberty Financial over alleged token ties to North Korea and Russia. Rising token supply, a wave of new listings, and continued growth in memecoin markets also weighed on sentiment, contributing to price pressure across the board. Shifting expectations around potential US Federal Reserve rate cuts further complicated the outlook, as traders reassessed how much monetary policy easing may be on the table in the coming months. Despite these headwinds, the recovery points to persistent interest in digital assets, particularly as new investment products expand access to the market. Recently launched spot ETFs, including those tied to XRP and Litecoin, alongside upcoming Avalanche offerings, are providing both institutional and retail investors with more entry points. This growing ETF ecosystem is helping cushion the market during episodes of heightened volatility, offering a stabilizing force as crypto continues to mature within global finance. The post Crypto market rebounds after sharp sell-off: Bitcoin at $91k appeared first on Invezz
