BTC, ETH, XRP eye recovery

Crypto prices today are still on the edge even as Bitcoin made a notable comeback, climbing back above the $90,000 mark after dipping below that level earlier in the session. 

Trading at $91,798 at press time, Bitcoin had dropped as low as $89,455 before buyers stepped in to stabilize the market. This rebound comes amid volatile conditions that have seen over $1 billion in liquidations and erased much of the post-election rally that pushed BTC to $126,000 just six weeks ago.

Many of the major altcoins remain shaky even as Bitcoin shows strong signs of recovery. Solana is trading close to $139, Ethereum is trading around $3,072, and XRP is holding at around $2.18, all of which are near key support levels.

The total crypto market cap, which recently dropped by more than $1.2 trillion from its highs, has steadied at around $3.23 trillion, up about 1.4% in the last day.

What caused the crypto market downturn?

Several factors have weighed on the market in recent weeks. Federal Reserve caution over interest rates has reduced liquidity for risk assets, as markets now price in only a 40–50% chance of a December rate cut. This has pressured speculative investments, including cryptocurrencies.

Strong exchange-traded fund outflows added further pressure. Bitcoin ETFs saw $870 million in redemptions on Nov. 14 alone, the highest single-day outflows since February. Over $1.1 billion in outflows was recorded across last week, while Ethereum ETFs shed more than $700 million. 

In what market analysts view as a reprieve, liquidity briefly returned on Nov. 18 as BTC ETFs recorded $150 million in inflows and ETH ETFs added $90 million.

Technical breakdowns intensified the decline. Bitcoin confirmed a bearish “death cross,” breaking below $90,000, and triggering a wave of forced selling. Over $20 billion in leveraged positions have been unwound since early November. Liquidity constraints tied to the recent U.S. government shutdown and continued quantitative tightening added to the strain.

Whale profit-taking, a retail slowdown, and stagnating stablecoin supply further sped up the downturn. Over 800,000 BTC were sold by long-term holders in the last month, according to on-chain data, while 65,200 BTC hit exchanges at a loss.

What’s next for the crypto market?

Instead of a full bear market, many analysts view this correction as a mid-cycle reset. Pullbacks of 20-30% are common during bull runs as historical patterns have shown. Bitcoin may be influenced by short-term catalysts, including upcoming economic data like non-farm payrolls and consumer price index reports. 

Longer-term tailwinds like the end of quantitative tightening, the ramp-up in Treasury spending, and the integration of blockchain and artificial intelligence could help push Bitcoin to a new all-time high by the end of the year.

For now, the market teeters on a knife’s edge. Bitcoin could recover and reach new highs if it stays above $90,000. A drop below $88,000 might lead to additional liquidations and drive prices towards the $80,000–$85,000 range. Investors remain watchful, balancing caution with opportunity in this volatile market.