Bitcoin (BTC) later recovered about 5% from its low, rising back to 76,800 USD. Currently, its market price is trading around 76,000 USD, a 3,5% decrease from the previous session. Other cryptocurrencies also saw similar movements. Compared to yesterday, Ether decreased over 4%, BNB and XRP fell about 2%, while Solana adjusted by more than 5%.

Bitcoin price movements over the past 24 hours. Graphics: CoinMarketCap

Bitcoin's recovery after its plunge occurred after the US Congress reached an agreement to end a partial shutdown. This information provided short-term support for the market. Pressure on risky assets also eased after Nvidia CEO Jensen Huang appeared on CNBC and dismissed speculation about a conflict between the chipmaker and OpenAI. "There is absolutely no controversy", Mr. Huang stated, reaffirming Nvidia's commitment to investing in OpenAI's next funding round. This statement came amidst growing concerns about the stability of OpenAI, the company behind ChatGPT and a key factor driving sentiment in the wave of AI-related tech stock increases.

Despite this morning's recovery, the recent short-term "crash" in the cryptocurrency market caused significant damage. According to the derivative market tracking platform CoinGlass, the total value of liquidated positions in the digital asset derivative market surged to 740 million USD over the past 24 hours. Long positions, bets on price increases, were hit hardest, with 287 million USD in Bitcoin long positions and 267 million USD in Ether long positions "wiped out".

Despite the rebound, many observers believe Bitcoin breaking through the bottom formed during the "tariff panic" in 4/2025 is a significant technical breakdown, increasing the risk of deeper corrections. However, Benjamin Cowen, founder of the analytics firm Into The Cryptoverse, suggests that widespread pessimism could set the stage for a short-term technical bounce. According to him, historically, whenever BTC sweeps past previous bottoms, the market often experiences "relief" rallies. He also warns that if prices do not rebound soon, the market could face a "turbulent midterm year", referencing Bitcoin's previous bear market cycles in 2022 and 2018, which coincided with US midterm elections. "The bear market narrative has been very strong for a long time, so I expect a counter-trend rally soon to give buyers some hope in the near future", the expert added.

Tieu Gu (according to CoinDesk)