
After experiencing one of the deepest losses in recent years on Monday, the cryptocurrency market has made a significant rebound. According to CoinGecko data, Bitcoin (BTC) added 6% to its value, marking its highest 24-hour price increase since May. This surge triggered a wider market recovery, with other major tokens also posting substantial gains.
Altcoins Join the Rally
Ether (ETH) and XRP (XRP) both increased by 8%, while BNB Chain’s BNB rose by 12%. Solana’s SOL was one of the biggest winners, surging as much as 16%. The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens by market capitalization minus stablecoins, jumped 7.26% and recorded over $95 million in trading volumes.
Global Markets Also Recover
The rebound wasn’t limited to cryptocurrencies. Japan’s Topix index jumped about 10% as the yen weakened against the U.S. dollar, snapping a five-day surge. Futures tracking the S&P 500 rose 1.5%, while the tech-heavy Nasdaq 100 jumped 2.1%. Renewed hopes for faster Fed rate cuts in the wake of Monday’s global market slide seem to have restored risk sentiment.
Market Watchers Remain Cautious
Despite the rally, crypto market watchers remain cautious about a continued surge among major tokens. Ruslan Lienkha, chief of markets at YouHodler, told CoinDesk that “we might see a corrective rebound in Bitcoin’s price,” but added that “this increase will likely be limited due to the prevailing pessimism in the broader markets.”
Bitcoin ETF Volume Not Too Crazy
According to Eric Balchunas, Bitcoin ETFs have traded about $2.5 billion so far, which is not too crazy considering the circumstances. In fact, if you’re a bitcoin bull, you don’t want to see crazy volume today, as ETF volume on bad days is a pretty reliable measure of fear.
What’s Next?
It remains to be seen whether this rebound will continue or if the market will experience another downturn. As Ruslan Lienkha noted, “it is unclear if we are entering a bearish market, and much will depend on the performance of the equity markets this month.” One thing is certain: the cryptocurrency market is known for its volatility, and investors should always be prepared for unexpected twists and turns.