Bitcoin Rebounds Above $100K as Altcoins Show Recovery Signs

Bitcoin’s recent price action has been nothing short of dramatic, with the primary cryptocurrency experiencing a significant downturn that culminated in a plunge to just under $99,000 yesterday evening. This marked Bitcoin’s lowest price point since mid-June, representing a nearly five-month low that prompted analysts to speculate about the beginning of a bear market. The decline from recent highs has been steep and rapid, with BTC challenging the $116,000 resistance just one week ago before beginning its descent.

The selloff accelerated after the US Federal Reserve cut interest rates, pushing Bitcoin below key support levels. After unsuccessful attempts to breach the $116,000 resistance, the asset was pushed south and tumbled below $107,000. A minor recovery over the weekend saw BTC trading between $110,000 and $111,000, but Monday brought renewed selling pressure that drove the price down to $104,000. The most impactful decline occurred Tuesday evening when bitcoin slumped below the psychological $100,000 barrier, bottoming at just under $99,000 before bulls finally intervened.

As of press time, Bitcoin had rebounded slightly to just over $101,000, though its market capitalization has suffered significantly, declining to $2.020 trillion according to CoinGecko data. Despite the price volatility, Bitcoin’s dominance over alternative cryptocurrencies has increased further to 58.6%, indicating that while BTC suffered losses, altcoins experienced even greater declines during the market turmoil.

The altcoin market experienced even more severe losses during the recent downturn, with Ethereum leading the decline among major cryptocurrencies. ETH plunged from $3,900 on Sunday to under $3,200 on Tuesday evening, effectively erasing all gains charted in 2025 and turning negative for the year. On a daily scale, Ethereum has neared $3,300 but remains the worst-performing larger-cap altcoin, highlighting the particular vulnerability of the second-largest cryptocurrency during this market correction.

Other major altcoins including XRP, BNB, SOL, DOGE, ADA, LINK, BCH, and XLM all followed the downward trajectory, painting a bleak picture across the broader cryptocurrency ecosystem. The cumulative market cap of all crypto assets dumped by more than $400 billion from top to bottom in just two days, representing one of the most significant short-term value destructions in recent memory. However, the market has shown some resilience, with the total cryptocurrency market capitalization rebounding to $3.450 trillion as of press time.

Amid the widespread carnage, a few tokens have managed to post impressive gains, with HYPE and ASTER leading the altcoin recovery with 6-7% increases overnight. BGB also joined the select group of cryptocurrencies showing positive momentum, though most major digital assets remain in the red. This selective recovery suggests that while the broader market remains under pressure, specific projects and tokens are attracting renewed investor interest despite the challenging conditions.

The recent market dynamics reveal several important trends for cryptocurrency investors and analysts. Bitcoin’s increased dominance to 58.6% suggests that during periods of market stress, capital tends to flow toward the perceived safety and established track record of the original cryptocurrency. This flight to quality phenomenon has been observed in previous market corrections and appears to be repeating in the current environment.

The performance divergence between established altcoins like Ethereum and smaller tokens like ASTER and HYPE indicates that market sentiment is becoming more selective. While the broader altcoin market suffered significant losses, the ability of specific tokens to post substantial gains overnight suggests that fundamental factors beyond general market sentiment are driving some investment decisions. This could signal a maturation of the cryptocurrency market where project-specific metrics and developments are gaining importance relative to pure momentum trading.

As the market stabilizes around current levels, all eyes will be on whether Bitcoin can maintain its position above the psychologically important $100,000 level and whether the recovery in tokens like ASTER and HYPE represents a temporary bounce or the beginning of a more sustained uptrend. The impact of the US Federal Reserve’s interest rate cut continues to reverberate through cryptocurrency markets, reminding investors of the complex interplay between traditional monetary policy and digital asset valuations.