- Bitcoin reclaims $114,000 after a 4.5% rally in 48 hours, signaling a reset in market dynamics.
- The crypto market cap hits $3.91 trillion, up 3.29% daily, with over $110 billion added in the last 24 hours.
- Sentiment shifts to neutral as the Fear & Greed Index reaches 50, amid whale buying and macroeconomic factors.
Bitcoin has staged a strong recovery, climbing above $114,000 after dipping below $109,000 last week. This surge reflects renewed investor confidence, driven by seasonal patterns and institutional accumulation. The rally aligns with broader market gains, including in traditional assets like stocks and gold.
Market Rebound Details: The total cryptocurrency market capitalization has risen to $3.91 trillion, marking a 3.29% increase in the past 24 hours. Bitcoin itself rose 1.85% to $113,985, briefly touching $114,309, according to data from Decrypt. This follows a 4.5% gain in less than 48 hours, reclaiming key levels after a 5.3% decline.
Open interest in Bitcoin futures dropped 6.2% to $39.9 billion, indicating de-leveraging that sets a foundation for sustainable upside. Spot market flows show accumulation, with approximately 170,000 BTC leaving exchanges over the past 30 days.
Driving Factors: The rise is attributed to ‘Uptober’ optimism, where Bitcoin historically gains over 20% in October, and fresh whale buying, per on-chain data from Investing.com. Macroeconomic tailwinds, including a 25 basis point Federal Reserve rate cut to 4.00%-4.25%, have bolstered sentiment. Fed Chair Jerome Powell noted, “uncertainty around the path of inflation remains high.”
Other cryptocurrencies followed suit: Ethereum rose 2% to $4,182.75, Solana gained 3.5% to $211.58, and XRP increased 1% to $2.90. Stablecoins like DAI provided stability amid volatility, while AI-focused tokens such as Worldcoin saw interest amid tech sector gains.
Sentiment and Outlook: The Bitcoin Fear & Greed Index has returned to 50, a neutral level, up from 28 during the recent dip, as per TradingView. Analyst Dom from Cointelegraph commented, “The liquidation divergence has played out pretty well. Spot books remain thin, up until ~$115K on Binance. Thin books = easier to move price. Still need the bulls to stay aggressive to get there.”
A potential pullback to $111,000 could occur due to a CME gap, but a close above $115,000 might invalidate bearish risks. Upcoming nonfarm payrolls’ data on Wednesday adds uncertainty, with markets eyeing institutional FOMO.
On X, analyst Ash Crypto highlighted that over $110 billion was added to the crypto market in 24 hours, pushing the valuation to $3.95 trillion.
Disclaimer:
This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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