3 Key Signs That Could Signal a Recovery

.The crypto market bloodbath continued this week with Bitcoin crashing below the $100,000 mark for the first time since June 2025. The token has shed more than 20% from its October 6 all-time high. This has erased about $1 trillion from total market capitalization across digital assets.

This crash follows the event that erased more than $20 billion on October 10. While the sentiment is still wary, the conditions for some gradual market recovery are emerging according to experts.

Federal Reserve Eases Tightening, Injects Fresh Liquidity

In fresh development, the U.S. Federal Reserve has given an indication of the temporary end to its quantitative tightening cycle. The Fed had reduced its balance sheet from nearly $9 trillion to about $6.6 trillion. They said they will start reinvesting proceeds from maturing bonds and not continue to reduce them.

🚨 BREAKING

The FED printed $3.4 billion today, bringing the total to $41.5 billion printed in the last few days.

This is the biggest money printing event of the last 5 years.

The crypto market is about to go parabolic. pic.twitter.com/qbSzexJrCn

— Alex Mason 👁△ (@AlexMasonCrypto) November 5, 2025

The Federal Reserve printed an additional $3.4 billion today, hiking the total amount created in the past few days to $41.5 billion.

The central bank also conducted a $29.4 billion liquidity injection through its SRF on October 31. This operation was done in order to smoothen funding pressures as bank reserves approached $2.8 trillion.

On QT, liquidity was thin for Bitcoin and most cryptocurrencies. This break may attract new money into the market and end the crypto market bloodbath.

China’s Tariff Suspension Boosts Market Sentiment

In addition to that, China announced the suspension of its 24% additional tariffs on U.S. goods for a year. They also cut, by up to 15%, duties on some agricultural imports. This move comes after both nations agreed to put an end to tensions in the trade war.

Notably, China’s state-owned COFCO resumed U.S. soybean purchases, the first since early this year. The gesture could further reduce short-term uncertainty in global markets. This indirectly supports risk assets like Bitcoin and equities. 

For digital assets, better trade conditions and stabilized macro relations can help partly reverse the crypto market bloodbath.

Exchange Inflows and Treasury Accumulations Continue

Despite the Bitcoin crash, market data indicates large-scale investors are still accumulating Bitcoin. According to the on-chain firm Checkonchain, billions in BTC are moving back into the exchanges day by day. This basically stabilized the coin above the $100,000 level.

The Bitcoin price keeps leaking lower and lower, and understandably, investors are increasingly on edge. Folks are worried that the 4yr cycle top has been put in at $126k, and question how so much buy-side pressure is being met with lower and lower prices.

We are seeing billions… pic.twitter.com/AVgrFNnC6j

— _Checkonchain (@_checkonchain) November 4, 2025

Crypto trading firm Wintermute shared in a report that the current market structure is healthier than in 2022. They however warned that sustained recovery will need fresh inflows from exchange-traded funds and digital asset products for the crypto market bloodbath to see an end.

Meanwhile, Wintermute added that the capital is increasingly migrating toward traditional and tech-driven assets; AI-related equities and prediction markets, such as Polymarket, have drawn in big investors. 

This leaves crypto lagging behind other sectors in 2025. The firm also argued that Bitcoin’s traditional four-year halving cycle has lost its predictive power.