Bitcoin (BTC) has recovered from Monday’s dramatic crash, which saw the price drop to an intraday low of $111,761 before reclaiming $112,000. The drop was part of a marketwide crash after a liquidation event that wiped out $1.7 billion in leveraged positions. The flagship cryptocurrency is on the verge of reclaiming $113,000, as whale accumulation and dip buying prevented a further decline. According to analysts, excess leverage and thin volumes sparked the flash crash across the crypto market. However, the outlook remains bullish for October, a historically strong month for BTC . Central Banks Could Begin Stockpiling Bitcoin In Five Years Deutsche Bank research predicts that Bitcoin (BTC) could soon be stockpiled by some central banks by 2030. The research paper says that Bitcoin and gold could act as a double hedge against inflation and other risks. The Deutsche Bank report stated that market traits are shifting, with short-term volatility falling in recent months. The report also highlighted Bitcoin’s ascent to a new all-time high past $123,000, calling it part of the asset’s maturing profile. Deutsche Bank believes central banks may begin treating Bitcoin as a complementary store of value, not a replacement for existing reserve assets. However, the bank highlighted that gold buying by central banks remains robust, moving its gold forecasts higher as bullion rallies. The rising demand for bullion is why Deutsche Bank sees space for two scarce assets (physical gold and Bitcoin) to coexist in official portfolios. The report noted that Bitcoin’s fixed supply and growing institutional adoption have tightened available supply in recent months. At the same time, it noted that the flagship cryptocurrency’s 30-day volatility hit historic lows. Market experts believe low volatility could speed up reserve adoption. Arthur Hayes Makes Audacious Bitcoin Prediction Former BitMEX CEO and Bitcoin billionaire Arthur Hayes has predicted that the cryptocurrency could hit $3.4 million by 2028. The prediction hinges on Treasury Secretary Scott Bessent implementing yield curve control policies, which could trigger massive money printing. Hayes called this a “once in a century change of the global monetary architecture.” Hayes based his calculation on an estimated $15.229 trillion in combined Federal Reserve and commercial banking credit growth through 2028. The model assumes the Federal Reserve will purchase 50% of new Treasury Debt issuance, while bank credit expands by $7.569 trillion. The analysis also focuses on Bessent’s plan to regain control of the Federal Reserve through strategic board appointments and regulatory pressure. Crypto Stocks Slump Cryptocurrency stocks were mixed on Monday as investors pulled back after crypto treasury firms’ latest buying spree. Crypto stocks fell during early trading on the US and Canadian markets after BTC slumped below $112,000 as the hype after the Federal Reserve’s rate cut faded. Medical device company Helius Medical Technologies (HSDT) registered the largest drop, ending the day down over 33% after announcing its first Solana (SOL) purchase. HSDT purchased 760,190 SOL for over $175 million, at an average cost of $231 per coin. Shares of Changpeng Zhao-backed CEA Industries (BNC) fell 19.5% after announcing a $500 million share deal on Sunday. BitMine Immersion Technologies (BMNR) ended the day down 10% after announcing a $1.1 billion ETH purchase. Shares of Michael Saylor’s Strategy also shed over 2%. Bitcoin (BTC) Price Analysis Bitcoin (BTC) is inching towards the $113,000 mark as it recovers from Monday’s rout. The flagship cryptocurrency and the broader market experienced a brutal selloff that wiped out excess leverage following the Federal Reserve’s rate cut. The Fed cut interest rates by 25 basis points in a landmark decision last week. According to analysts, the excess leverage, combined with thin volumes, led to a deeper correction and a broader market selloff. Nearly 400,000 traders were liquidated, with $1.7 billion in positions wiped out. However, while investors have been cautious, technical levels have held firm. Today’s recovery suggests that investors view Monday’s crash as an isolated selloff, not a bearish warning. In fact, such extreme liquidation events and overleveraged trades help reset market dynamics, often creating a more stable base. Meanwhile, retail traders and investors have bought the dip, with the average Bitcoin holder at a loss, as indicated by the 30-day MVRV ratio. The ratio slipped below 0 for the first time in two weeks. A negative MVRV suggests undervaluation and often precedes a strong reversal. Meanwhile, Bitcoin whales are also accumulating. According to data from CryptoQuant, wallets holding between 1,000 and 10,000 BTC are snapping up Bitcoin. This aligns with data from Santiment, which reveals that Bitcoin whales have added 56,000 BTC since late August. Whale accumulation indicates growing confidence in the market outlook and reduces the likelihood of a drop. BTC ended the previous weekend in the red, dropping 0.56% and settling at $115,314. The price faced volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as BTC registered a marginal increase and settled at $115,381. Bullish sentiment intensified on Tuesday as the price rose 1.26% to cross $116,000 and settle at $116,832. Selling pressure returned on Wednesday as BTC fell to an intraday low of $114,724. It recovered from this level to settle at $116,484, ultimately dropping 0.30%. Source: TradingView BTC reached an intraday high of $117,998 on Thursday. However, it could not stay at this level and settled at $117,117. The price lost momentum on Friday, dropping 1.22% to $115,690 before registering a marginal increase on Saturday. BTC was back in the red on Sunday, falling 0.41% and ending the weekend at $115,282. The flagship cryptocurrency plunged to an intraday low of $111,761 on Monday as bearish sentiment intensified. It recovered from this level to reclaim $112,000 and settle at $112,736. The current session sees the price marginally up, trading around $112,900, as buyers look to push it past $113,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
