Bitcoin mounted a sharp recovery following the Federal Reserve's decision to keep interest rates unchanged, climbing back above $76,000 after briefly dipping to $75,000. The move reversed three consecutive days of modest declines, though the volatile session triggered over $75 million in long liquidations.
Intraday Volatility and Market Liquidation
Data shows that after falling to around $75,000 yesterday afternoon immediately after the Fed's announcement, bitcoin began an ascent. By 9:30 a.m. ET on April 30, it had not only regained the $76,000 level but briefly tested the $76,500 resistance. However, the path was far from smooth. The cryptocurrency suffered a sharp sell-off shortly after hitting the morning session high of $76,365. When the selling wave subsided, bitcoin had dropped to just under $75,400 before initiating its second recovery of the day. In less than eight hours, bitcoin rallied from that low to $76,528 — a new intraday high — before retreating to the $76,300 area. If the current gains hold, bitcoin would close April with an increase of roughly 13%, marking its first positive monthly performance in 2026. The recovery pushed bitcoin's market capitalization to approximately $1.53 trillion.
Despite the modest 24-hour gain, the intraday reversal triggered significant forced selling. Coinglass data reveals that long liquidations in bitcoin totaled $75 million during the period, compared to nearly $17 million in short liquidations. Across the broader crypto market, $266 million in leveraged long positions were liquidated in 24 hours, versus $89 million in shorts. The data underscores the intense battle between bulls and bears, with many highly leveraged traders caught offside by the sharp turnaround.
Institutional Flows Signal Structural Recovery
Gracie Lin, CEO of OKX SG, urged market participants not to let the short-term volatility overshadow what she described as an eight-week structural recovery for bitcoin. She cited continued inflows into spot bitcoin ETFs as evidence. “Spot bitcoin ETFs in the US attracted roughly $3.7 billion between late February and late April — the first sustained inflow period of 2026 after four consecutive months of outflows,” Lin said. “Meanwhile, despite macroeconomic and geopolitical shocks, bitcoin recently tested the $80,000 level. Singapore, with its strategic positioning and clear regulatory framework, is a hub of institutional activity, and the allocators we speak with here are not watching single Fed decisions — they are watching whether institutional participation is sustained.”
Cautionary View: Potential Drop Below $70,000
Sergei Gorev, chief risk officer at Youhodler, offered a more cautious perspective. He noted that bitcoin has already posted two consecutive quarterly declines — a pattern he described as “extremely rare.” While every crypto winter has been followed by a strong recovery, Gorev warned of potential headwinds. “We could be facing another negative quarter,” Gorev said. “Every time a new leader replaces the old one at the Federal Reserve, the price of bitcoin starts to fall. We have already seen this happen three times in a row. We are now approaching another change in Fed leadership.” He added that if bitcoin repeats the pattern of declining in the week following a Fed meeting — as it did after eight of the last nine meetings — the price could easily drop below $70,000.
Broader Market Context and Outlook
The April 29 session saw bitcoin oscillate in a $2,800 range between $75,000 and $77,800 as investors grappled with the Fed's rate decision. The subsequent recovery on April 30 suggests that some market participants viewed the initial dip as a buying opportunity. However, the contrasting views from industry leaders highlight the uncertainty surrounding bitcoin's near-term trajectory. While institutional ETF inflows provide a positive structural backdrop, historical patterns of post-Fed weakness and leadership transitions at the central bank pose significant risks. Traders will be closely watching whether bitcoin can maintain the $76,000 level and whether the current monthly gain can be sustained into May.