The crypto market has seen a significant 7.51% increase over the past 24 hours, with the total market cap reaching $2.41 trillion. The reason behind this surge is that the whole market was pushed up by a drastic recovery of Bitcoin that was recently at its lowest point.
This upswing saw Bitcoin price shoot upwards by over 16-month low of around $60,000 to over $70,000 to the core of this market-wide revival. Bitcoin’s dominant share of the market (58.71%) contributed significantly to the overall surge.
Here’s Why the Crypto Market is Showing Recovery
The recent boom in the crypto market and, mainly, Bitcoin is a reflection of a greater trend in the traditional markets. The S&P 500 and the Gold have also soared, and this is a positive indicator of a relief rally in various markets.
The fact that Bitcoin has suddenly reversed out of its oversold positions has offered investors hope, especially after the market has entered into panic levels of fear. The Fear And Greed Index had gone to extreme levels, revealing 8 levels a contrarian bounce.
Source: coin 360 dataMoreover, there have been reports of considerable piling up by exchanges and whales, which have further intensified the rally.
The resilience of the market even after the recent sell-offs indicates that the market has more to gain. Nonetheless, to make this recovery sustainable, Bitcoin should be above $70,000.
The next significant catalyst for the crypto market will be the U.S. CPI data release on February 12, which could have a major impact on the market.
Bitcoin Price Recovery: 8% Rebound, Is More Ahead?
BTC price surged 9.08% over the last 24 hours, reaching $70,722 at the time of writing. Investors are closely monitoring this critical psychological level because the success of Bitcoin in continuing to hold this price may indicate a stronger recovery. On February 6, the spot Bitcoin ETFs obtained an inflow of net 330.7M.
If the future Bitcoin outlook can establish $70,000 as a solid support level, the next target will likely be $75,000, which would further confirm positive momentum. Nonetheless, such a failure to retain at $70,000 may result in fresh selling pressure, which may cause the price to revert to the $65,000 zone.
ETH, XRP, Solana, and Other Altcoins Show Strong Rebounds in 24 Hours
Cryptocurrency prices have shown a significant rebound, with Ethereum holding steady above the $2,000 support level, up by 8% in the past 24 hours. XRP price surged by 15%, and it was among the best gainers. Solana has also shown a revival, and it is trading at $88, which is up by 10%.
Other leading coins, such as ADA, DOGE, and BCH, have recorded significant recoveries. With the possibility of the bullish trend to persist, most other cryptocurrencies will continue gaining more, and the future of the crypto market looks promising.
Source: https://coingape.com/trending/why-is-crypto-market-up-today-feb-7th/
