The cryptocurrency market is showing no signs of a recovery, as many assets seem to be entering a sideways trajectory. Bitcoin (BTC) appears to have found some footing at the $88,000 price level. Let’s discuss if the cryptocurrency market will break out of its current trend, continue on its sideways trajectory, or enter a rally in the coming days.
Will We See A Cryptocurrency Market Recovery Soon?
The cryptocurrency market has entered a bearish phase since October 2025. In fact, the crypto market faced its most significant single-day liquidation event in October 2025. The market is still struggling to recover from last year’s losses.
The October 2025 cryptocurrency market correction was likely due to macroeconomic uncertainty. The Federal Reserve rolled out a 25-basis-point interest rate cut the same month, but investors were worried that the Fed would keep rates unchanged thereafter. However, the Fed still announced another 25-basis-point rate cut in December. However, by then the market was deep into fearful territory, and risky assets were out of the question for most investors. Cryptocurrency took a back seat, while safe-haven assets like gold and silver took the lead.
The cryptocurrency market may continue its sideways trajectory over the coming weeks, given that the bearish sentiment still looms over the market. Moreover, geopolitical tensions and macroeconomic worries are deterring investors from taking more risks. The lack of an interest rate cut in 2026 also does not help the cryptocurrency market recovery.
Also Read: New Pattern Suggests XRP Is Heading to $21: Here’s When
Bitcoin (BTC) is the market leader, and other assets will likely follow its trajectory. Despite its current bearish path, there is a chance that the original crypto will climb to a new all-time high sometime this year. Bernstein and Grayscale both expect BTC to rally to new peaks in 2026. BTC hitting a new all-time high will likely trigger a market-wide rally. Such a development could lead to a full recovery.