Bitcoin and the rest of the cryptocurrency market are posting gains after yesterday’s market plunge. Bitcoin rose above the $39,000 mark as most altcoins recorded double-digit gains. This follows after a steep sell-off a day earlier that saw over $200 billion wiped off the market.
At press time, Bitcoin was trading nearly 9% higher at $39,000, after reaching intraday highs of $39,716. Bitcoin had fallen as low as $34,322 in the prior day. Ethereum also traded up nearly 11% at a present price of $2710. The majority of altcoins including Hedera, XRP, Terra( LUNA), Shiba Inu recorded significant 24-hour gains between 7% and 20%.
Hedera (HBAR) has been in the spotlight of late after rising nearly 20% on Feb. 22 following Tesla CEO, Elon Musk’s cryptic tweet.
Gala (GALA,+20.06%), Amp (AMP,+24.03%), ConstitutionDAO (PEOPLE, +31.24%), Polymath (POLY, +22.02%), aelf (ELF,+33.17%) were significantly up alongside with GNT, the native coin of decentralized peer-to-peer network Golem, which boasted a 60% gain on a 24-hour basis.
As a wide reversal in US Stocks markets drove key indices to close higher, Bitcoin held on to its recovery from a one-month low of $34,322. Cryptocurrencies benefited from the upward trend in prices. Alternative cryptocurrencies led the broader crypto market recovery, having taken a bigger hit during the market selloff.
What Metrics Say
Analysts believe that Bitcoin’s surprising rebound could also be the result of a ”short squeeze”. This might also be said of several altcoins. OnChain analytics, Santiment earlier reported of assets such as ADA, MATIC, CRO, and LINK looking particularly oversold.
The Crypto Fear & Greed Index, measuring market sentiment has improved from yesterday’s ”extreme fear”. At press time, the index measured just 27/100—characterizing “fear”—a slight rebound from yesterday’s ”extreme fear.”
OnChain Analytics, Santiment speaking on the market recovery says ”Cryptocurrency prices absolutely burst open in the last 2 hours, with most assets exceeding prices prior to the sudden downswing that occurred as war reports broke 16 hours ago. Expect continued volatility, though, as traders react to ongoing updates”.
IntoTheblock analytics reports that trading volume for Bitcoin perpetual swaps reached a 3-month high of over $134 billion on Feb.24 as trading activity accelerates.
