Bitcoin’s struggle to mount a sustained rebound could signal a tougher stretch ahead, one analyst warned, after the cryptocurrency experienced sharp intraday swings on Tuesday.
The largest digital asset slid to a 14-month low before staging a rapid recovery as volatility in U.S. tech stocks rippled through broader markets. Bitcoin dropped to $72,900 in early U.S. trading—its weakest level since November 2024, when Donald Trump won the presidential election—before rebounding roughly 5% to about $76,800. The rally later lost momentum.
Ether posted a similar pattern, climbing as much as 10% from its session low to trade above $2,300 before paring gains, according to CoinDesk data.
The bounce followed news that U.S. lawmakers reached a deal to end the partial government shutdown, providing short-term relief for risk assets. Sentiment also improved after Nvidia CEO Jensen Huang appeared on CNBC and dismissed speculation of friction between Nvidia and OpenAI.
“There’s no controversy at all. It’s complete nonsense,” Huang said, reiterating Nvidia’s plan to participate in OpenAI’s next fundraising round. His comments helped calm investor nerves amid heightened scrutiny of OpenAI, a major driver of the AI-led tech rally.
Despite the rebound, the earlier selloff left significant damage across crypto markets. Liquidations across digital-asset derivatives totaled $740 million over the past 24 hours, according to CoinGlass. Long positions accounted for most of the losses, with $287 million in bitcoin longs and $267 million in ether longs wiped out.
Technical pressure builds
From a technical perspective, bitcoin’s drop below the April 2025 “tariff tantrum” lows marked a notable breakdown, raising the risk of further downside.
Still, Benjamin Cowen, founder of Into The Cryptoverse, said extreme bearish sentiment could pave the way for a short-term relief rally. Historically, he noted, bitcoin has often bounced after sweeping prior lows.
Cowen cautioned, however, that failure to rebound decisively could point to a prolonged downturn. “If bitcoin doesn’t bounce soon, it could be one hell of a midterm year,” he said, referencing prior bear markets in 2018 and 2022 that also coincided with U.S. midterm election cycles.
“The bear narrative has been very strong for some time,” Cowen added in a post on X. “That often sets the stage for a countertrend rally—at least temporarily.”
