Crypto Market Turmoil: 3 Key Signs of a Potential Recovery

Jakarta, Pintu News – The crypto market crashed again this week, with Bitcoin dropping below $100,000 for the first time since June 2025, slipping more than 20% from its record high on October 6. As a result, around $1 trillion vanished from the digital asset’s market capitalization. This article looks at three key indicators of recovery to watch.

3 Crypto Recovery Indicators:

• The Fed could potentially pause the Quantitative Tightening cycle.
• China suspended an additional 24% tariff on US goods.
• Billions of dollars in BTC continue to flow back into exchanges every day.

This latest crypto market crash comes after the events on October 10 that led to the loss of more than $20 billion. Although the market sentiment is still cautious, experts mention that conditions are beginning to emerge that will allow for a gradual market recovery.

Federal Reserve Loosens Tightening, Injects New Liquidity

In a recent development, the US Federal Reserve (Fed) signaled that the quantitative tightening (QT) cycle will be paused.

Read also: Bitcoin Price Recovers to $102,000 Today: Important BTC Indicators Show “Opportunity Zones”

Previously, the Fed had trimmed its balance sheet from nearly $9 trillion to around $6.6 trillion. Now, it says it will start reinvesting the proceeds from maturing bonds, instead of continuing to reduce its holdings of such assets.

As of November 5, the Fed also printed an additional $3.4 billion, bringing the total new money created in recent days to $41.5 billion.

In addition, on October 31, the US central bank injected $29.4 billion of liquidity through the SRF (Standing Repo Facility). This move was taken to ease funding pressures as bank reserves approach the $2.8 trillion mark.

During the QT policy, liquidity for Bitcoin and most cryptocurrencies was severely limited. With this pause, the crypto market could potentially attract new fund flows and end the prolonged period of market collapse.

China’s Suspension of Tariffs Boosts Market Sentiment

In addition, China announced the suspension of an additional 24% tariff on goods from the United States for one year. The government also cut import duties to 15% on a number of imported agricultural products. This step was taken after the two countries agreed to ease tensions in the trade war.

Interestingly, China’s state-owned company COFCO resumed buying soybeans from the US – the first purchases since the beginning of this year. This move is expected to reduce short-term uncertainty in the global market.

For digital assets like crypto, improving trade conditions and stabilizing macroeconomic relations could help recover some of the losses incurred in the recent crypto market crash.

Read also: Franklin Templeton Ready to Launch XRP ETF This Month After Latest S-1 Filing!

Inflows to Exchanges and Treasury Accumulation Continue

Despite the fall in Bitcoin price, market data shows that large-scale investors are still accumulating Bitcoin.

According to on-chain analytics firm Checkonchain, billions of dollars in BTC continue to flow back into exchanges every day. This movement indirectly helps stabilize Bitcoin’s price above the $100,000 level.

Crypto trading firm Wintermute stated in its report that the current market structure is healthier than it was in 2022. However, they also cautioned that a sustained recovery would still require new fund flows from products such as exchange-traded funds (ETFs) and other digital assets for the crypto market crash to truly end.

Meanwhile, Wintermute also noted that investor capital is now starting to shift towards traditional assets and technology-based sectors. Stocks related to artificial intelligence as well as prediction markets like Polymarket are becoming magnets for large investors.

This makes the crypto sector lag behind other sectors throughout 2025. Wintermute also added that Bitcoin’s halving cycle, which usually takes place every four years, has lost its predictive power.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. Crypto Market Bloodbath: 3 Key Signs That Could Signal a Recovery. Accessed on November 6, 2025