After months of declining values, Bitcoin (BTC) has staged a modest rebound to around $92,000 after it fell below $85,000 a month ago following heavy selloffs by institutional investors. Prior to this, 2025 had seen Bitcoin’s value rise dramatically to over $1,20,000 in June, reaching a market cap of over $2.41 trillion.
The demand for newly mined or resale of Bitcoin remains tepid, given that the brief rally hasn’t been a broad conviction. Though Bitcoin ETF inflows are now positive, the market remains structurally weak, as investors are still waiting for the US Federal Reserve’s upcoming economic policy changes.
The rebound in the demand for Bitcoin has been attributed to social sentiments, particularly FOMO, as traders are cashing in on the trough for expectations of higher prices later on. Some analysts have dismissed this short spike as a temporary ‘volatility spike’, as this has been the case with Bitcoin bottoming out before the start of a recovery.
Analysis of market trends have shown that the brief rebound has more to do with the absence of heavy selling than the presence of a strong demand. Short sellers have been credited with the rebound, with the realised cap growth increasing by only 0.7 percent, a sign of weak capital inflows.
For now, all eyes are on Jerome Powell, as the global equity sentiment and crypto-specific flows now depend on whether the Fed Reserve will ease interest rates, besides its overall outlook for the US economy in the near term.
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