Cryptocurrency trading stabilized after the turbulent sell-off at the beginning of June, s Bitcoin is trading near $65,500 and major altcoins are showing moderate gains as investor morale improves.
The resurgence is a significant departure from the lows reached just over a week ago, when Bitcoin fell to around $59,000 on June 5 and 6, its lowest level since October 2024.
According to Bitcoin Magazine, Bitcoin has recovered more than 11% from a June 5 low near $59,000 to around $66,500, as easing tensions in the Middle East and continued institutional buying provide support.
The price recovery represents a shift in market psychology after weeks of intense selling pressure that saw the cryptocurrency fall approximately 50% from its peak.
Market sentiment indicators show that the situation has stabilized. MEXC and Cointribune reported that the Crypto Fear & Greed Index, which rates investor psychology on a scale of 0 (extreme fear) to 100 (extreme greed), rebounded from an all-time low of 5 on June 6 to approximately 18-20 by mid-June.
The index fell to 12 on June 6 before gradually rising, indicating a departure from the darkest levels of panic that gripped markets earlier in the month.
During the recovery, altcoins showed different trends. According to SpendNode, Ethereum, XRP and Solana rose by roughly 4% on June 16 as market sentiment generally improved.
Other altcoins, including LINK, TON, HBAR, SUI, Ondo and ICP, had solid gains of 3% to 6%, indicating a broader recovery rather than Bitcoin-specific strength.
Institutional accumulation appears to be anchoring the recovery. According to the Economic Times, Bitcoin’s mid-June recovery shows heavy accumulation and institutional buying support, showing relative resilience after a sharp drop below $59,000.
This pattern is consistent with previous crypto market cycles, where institutional investors flocked to buy assets during times of great fear — a dynamic that historically preceded recoveries.
Several variables, including geopolitical tensions and broader macroeconomic concerns, contributed to the June selloff, which rocked risk assets around the world.
Bitcoin dipped below $70,000 on June 2 before bouncing lower, with the $59,000 mark serving as the capitulation threshold as many leveraged bets were liquidated. Since then, the recovery has been steady but cautious, with traders looking for signs that the worst of the selling pressure has eased.
