Bitcoin (BTC) has rebounded strongly from a market sell-off, with renewed demand pushing the flagship cryptocurrency near the $105,000 level, increasing its market cap by nearly $100 billion in just seven hours.
At the time of writing, Bitcoin’s market capitalization had increased from $1.97 trillion at 01:30 UTC to $2.07 trillion at 18:30 UTC. The asset is trading at around $104,300 and is up 3.44% in the past 24 hours.
This recovery follows a volatile period caused by high ETF outflows, macroeconomic concerns, and panic selling in the crypto market.
Earlier this week, investors withdrew nearly $1.8 billion from Bitcoin and crypto ETFs, and major companies like BlackRock offloaded more than $379 million across Bitcoin and Ethereum products in two days.
The decline intensified after Federal Reserve Chairman Jerome Powell suggested that interest rates could remain high for longer than expected, pushing the dollar higher and weighing on risk assets.
Virtual currency market volatility
When President Donald Trump in October announced sweeping 100% tariffs and export restrictions against China starting November 1, 2025, markets were initially spooked, causing Bitcoin to fall by 12% and other major crypto assets to fall by up to 40%.
The correction was further exacerbated by extreme leverage, with an average of about 300,000 traders liquidated each day, including a $20 billion wave of liquidations on October 10 that compounded the downturn.
Despite the turmoil, institutional buyers are emerging. For example, Michael Saylor’s firm Strategy acquired 397BTC at an average price of $114,771, demonstrating long-term conviction despite the asset trading below its purchase price.
Market analysts say the recent surge is not driven by a retail frenzy, but by quiet capital inflows as fears begin to fade.
They suggest that as long as FOMO is contained and retail participation is kept in check, the rally can continue, a dynamic that has historically driven Bitcoin’s upward momentum.
Featured image via Shutterstock
