Top Analysts Reveal Key Reasons Why Crypto Market Hasn’t Recovered Yet

Jakarta, Pintu News – The crypto market is struggling to remain stable, despite some positive macroeconomic news, such as the 25 basis points interest rate cut by the United States Federal Reserve.

Renowned crypto analyst, Ted Pillows, has shared an explanation regarding the possible causes of the current sector-wide downward trend.

Positive Developments in the Crypto Market

Last week, the financial sector as a whole experienced a number of significant events that disrupted normal activity. Firstly, the US Federal Reserve announced a much-anticipated 25 basis point interest rate cut.

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Simultaneously, the Fed also stopped its Quantitative Tightening (QT) policy, which is a policy of reducing its balance sheet.

There was also a strategic de-escalation of trade tensions between the US and China, and the approval of an Exchange Traded Fund (ETF) product for altcoin staking. With this series of positive news, many expected the crypto market to experience an upward rally. However, this has yet to happen.

A typically strong October (known as “Uptober”) closed with a decline in the crypto market – for the first time in seven years. Now, crypto enthusiasts are wondering why the market hasn’t recovered from this downward trend.

Ted Pillows: Crypto Needs New Liquidity Flows

Ted Pillows, a popular crypto analyst, gave his explanation. He noted that the end of Quantitative Tightening does not mean that there is a new injection of funds into the economy. In other words, the liquidity conditions in the market have not changed, while crypto requires a continuous flow of new liquidity in order to grow.

Previously, Ted had mentioned that the altcoin market needed additional liquidity, which he said could only happen in two ways.

According to him, it could happen if the Fed restarts Quantitative Easing (QE), or if the US Treasury releases liquidity from the Treasury General Account (TGA) into the economy. However, given the current state of the crypto market, Ted thinks that the first scenario is unlikely to happen anytime soon.

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Insufficient Momentum to Drive Crypto Market Rally

According to Ted Pillows, the second reason why the crypto market has not been able to bounce back is because sentiment and risk appetite are still in a state of lethargy or depression.

The high dominance of stablecoins suggests that both retail and institutional investors are still very cautious. They prefer to wait for market certainty before getting back in, rather than taking risks amidst uncertainty.

In addition, the market has also been limited by massive liquidations and outflows of funds from crypto ETFs in recent times. As of November 4, the digital asset ecosystem has recorded a total liquidation of $1.33 billion, with Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and XRP (XRP) being the assets that suffered the most losses. This has reduced leverage levels in both the derivatives and spot markets.

Finally, Ted also touched on the continued macroeconomic and geopolitical headwinds in the market. Due to the constant uncertainty and fluctuations, the current positive sentiment is not strong enough to drive a rally in the crypto industry.

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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. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinspeaker. Analyst: 4 Reasons Why the Crypto Market Has Not Recovered. Accessed on November 5, 2025