Crypto Giants Rebound : Towards a Sustainable Recovery ?
Yesterday was a dark day for the crypto market. Bitcoin (BTC), but especially altcoins, suffered heavy losses following the publication of a disappointing inflation report in the United States. Although prices haven’t fully recovered yet, a significant rebound is already underway.
The total market capitalization of the crypto market fell by approximately 4% yesterday, marking the largest decline since May 23, nearly three months ago. Everything began when the Producer Price Index (PPI), which measures product price changes, came in significantly higher than expected. Minutes later, prices plummeted dramatically.
Bitcoin dropped from $121,000 to $119,000, before reaching a low of $117,250 in the evening. Ethereum (ETH) also fell, from $4,720 to $4,450. However, overnight, investors returned to the market in droves, bringing the two largest cryptocurrencies back to substantially higher levels. Bitcoin is currently trading at $119,000 and Ethereum at $4,645.
Other cryptocurrencies like Cardano (ADA) followed a similar trajectory and recovered some of their losses. ADA is now trading just $0.02 below its pre-inflation report price, at $0.95.
When Bitcoin Sets the Trend for Other Cryptos
It’s now crucial to closely monitor Bitcoin’s movements. Is this the beginning of a larger rebound? If so, altcoins should logically recoup their losses. But if Bitcoin seeks to establish new lows, it will be very difficult for other cryptocurrencies to maintain their positions.
Dutch analyst Michaël van de Poppe predicts some short-term pain ahead. He believes Bitcoin could climb back to $120,000, before seeking lower levels again, which he estimates at $116,800 and $114,750.
“Sharp decline in the markets for Altcoins, and Bitcoin is back in the range. In the short term, the trend is bearish for me. However, if we break resistance around $120,500, that would be a sign that we’re going to make new highs.”
