The digital asset market experienced a significant turnaround on Monday as Bitcoin (BTC) recovered from an early decline to nearly $65,000 and surged to the $67,000 level within three days. This price level was crucial as it was where Bitcoin bounced back from during last Friday’s market shakeout. As of the latest update, Bitcoin was trading at $66,800, showing a 0.9% increase over the past 24 hours.
While Bitcoin led the way in the market rally, most altcoins also saw gains, although they lagged behind BTC in terms of daily performance. Ether (ETH) was still in the red with a 0.7% decline, while other popular tokens like dogecoin (DOGE), shiba inu (SHIB), Avalanche (AVAX), and Near (NEAR) were down by 2%-5%. Ripple’s XRP (XRP) stood out among the altcoins with a 5% daily gain, making it the only cryptocurrency, apart from Bitcoin, in the CoinDesk 20 Index to have a positive daily performance.
In addition to altcoins, several publicly-listed Bitcoin miners also experienced double-digit gains. Companies like Hive Digital Technologies (HIVE), TeraWulf (WULF), and Canaan (CAN) rallied by 10%-20%, while larger miners like Marathon Digital (MARA) and Riot Platforms (RIOT) saw a 4% increase in their stock prices.
Looking at traditional markets, the S&P 500 and Nasdaq 100 continued their upward trend, reaching new all-time highs with a 0.9% and 1.2% increase, respectively. Bitcoin, on the other hand, has been trading sideways below its all-time highs since March, leading to decreased volatility in the market.
According to Alex Thorn, head of research at Galaxy, Bitcoin’s 30-day realized volatility has dropped to historically low levels due to the lack of significant price movements. Derivatives trading network Paradigm also noted that the crypto market is losing momentum as traders await new catalysts to drive action.
Market analyst Bob Loukas cautioned that Bitcoin may be entering a declining phase in its daily cycle and could potentially revisit the lower $60,000 range before a sustainable uptrend. Despite the short-term outlook, the overall sentiment in the cryptocurrency market remains optimistic, with expectations of positive developments in the future.
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