The cryptocurrency market has shown signs of recovery after a sharp sell-off over the weekend that saw Bitcoin drop below $25,000 and Ethereum below $1,600. The two leading coins have bounced back above their respective support levels and are trading with modest gains on Monday.
According to CoinMarketCap, Bitcoin is up 2.5% in the last 24 hours and is currently trading at $26,300 as of writing. The coin has regained some of its lost market dominance, which now stands at 42.5%. Bitcoin’s rebound comes amid reports of increased buying activity from institutional and retail investors, who may have seen the dip as an opportunity to accumulate more coins at lower prices.
Ethereum, the second-largest cryptocurrency by market cap, is also in the green, up 1.2% in the last 24 hours and trading at $1,720 as of writing. The coin has managed to stay above the $1,700 support level, which is seen as a crucial threshold for its bullish momentum. Ethereum’s network activity remains high, with over 1.3 million transactions and $12 billion in daily volume recorded on Monday.
Other major cryptocurrencies are also recovering from the weekend slump, with Binance Coin, Cardano, Solana, Avalanche and Terra among the top performers in the top 20 by market cap. Binance Coin is up 6.5%, Cardano is up 4.8%, Solana is up 7.2%, Avalanche is up 8.9% and Terra is up 10.4% in the last 24 hours.
The total market cap of all cryptocurrencies has increased by 3.2% in the last 24 hours and is now at $1.13 trillion, according to CoinMarketCap. The market sentiment has also improved slightly, with the Fear & Greed Index moving from extreme fear to fear, indicating a lower level of panic among investors.
The crypto market recovery comes amid a mixed outlook for the global economy and financial markets, as investors weigh the impact of the Omicron variant of Covid-19, inflation pressures and monetary policy decisions from major central banks. The crypto industry also faces regulatory uncertainty in several jurisdictions, as authorities seek to impose more rules and oversight on the nascent sector.
