The cryptocurrency market is showing strong signs of recovery following a period of turbulence, with Bitcoin (BTC) surging past $83,000 in early Asian trading hours on Wednesday.
The broader market added 3.5% in value, pushing the total market capitalisation to $2.67 trillion.
Major altcoins, including Ethereum (ETH), Solana (SOL), and XRP, followed suit with gains ranging between 1% and 7% intraday.
Meanwhile, Kaspa (KAS) led the market rally with a staggering 16% increase in value. The resurgence comes as traders navigate the implications of new US tariffs and growing recession fears.
Crypto market bounces back from sharp dip
The digital asset market has been highly volatile in recent days, with Bitcoin experiencing a sharp decline to a multi-month low of $76,000 before rebounding.
At its highest point on Wednesday, Bitcoin touched $83,737.45 before stabilising around $81.65k.
Source: CoinMarketCap
The recovery coincided with a reduction in liquidations, which fell by 58% to $389.61 million, according to data from Coinglass.
Bitcoin’s dominance in the market increased slightly to 61.27%, exerting pressure on altcoins despite their overall gains.
Ethereum recorded a 1% gain, reaching an intraday high of $1,961.80 before settling at $1,863. XRP saw a stronger movement, surging 7% to $2.15, in response to developments surrounding Franklin Templeton’s S-1 filing for an XRP ETF.
Meanwhile, Solana gained 2%, trading at $122, with its 24-hour high and low at $128.15 and $118.87, respectively.
Trade war tensions and recession fears influence market trends
Bitcoin’s price action has been closely linked to macroeconomic events, with recent US policy shifts adding to the uncertainty.
Investors are digesting the impact of new tariffs and the potential fallout of a prolonged trade war.
Concerns over a possible US recession continue to loom over financial markets, influencing risk asset valuations, including cryptocurrencies.
Despite these uncertainties, traders appear optimistic about the possibility of a sustained rally, fuelled in part by the US government’s strategic Bitcoin reserve announcement.
Market sentiment is shifting as institutional investors weigh their options in an increasingly complex economic landscape.
Meme coins and altcoins join the rally
Meme cryptocurrencies have mirrored the broader market’s uptrend. Dogecoin (DOGE) gained 4%, reaching $0.1610, while Shiba Inu (SHIB) rose 3% to $0.00001190.
Pepe Coin (PEPE) saw a 7% increase, trading at $0.000006204.
Meanwhile, some lesser-known altcoins have led the charge in the latest market recovery.
Kaspa (KAS) posted an impressive 16% gain, trading at $0.06836. Celestia (TIA) also saw significant movement, climbing 14% to $3.21, while Bittensor (TAO) increased by 12%, reaching $256.5.
However, not all digital assets benefited from the uptrend.
Ethena (ENA) declined by 7%, trading at $0.3722, while Maker (MKR) dropped 4% to $1,078.61.
TRON (TRX) recorded a 3% loss, with its price falling to $0.2229.
While the recent rally has sparked optimism, the market’s highly volatile nature means prices could see further fluctuations in the coming days.
Institutional interest, regulatory developments, and macroeconomic factors will continue to play a crucial role in shaping the crypto market’s trajectory.
With Bitcoin holding above $80,000, traders are closely monitoring whether the flagship cryptocurrency can sustain its gains or if another correction is on the horizon.
Altcoins are also at a critical juncture, as their movements largely depend on Bitcoin’s next steps in an increasingly uncertain financial environment.
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