Crypto Market Rebounds 2.44% as Bitcoin Reclaims $80,000

The crypto market has shown signs of recovery, with most digital currencies reversing the selloffs experienced in the past week. The combined crypto market capitalization has increased by 2.44% to $2.76 trillion, indicating a shift in market sentiment. Bitcoin (BTC), the leading cryptocurrency, has been a focal point, with its price fluctuating but ultimately reclaiming the $80,000 mark after dropping to a low of $76,624.24. This rebound suggests that key support levels have been established, providing a foundation for potential further gains.

Altcoins like Ethereum (ETH) and Solana (SOL) also dropped to new multi-week lows earlier in the month. While Ethereum fell to a monthly low of $1,760.94, Solana bears dragged the coin down to a $113 low. As it stands, BTC and altcoins have bounced off key support, which was formed at their respective monthly lows.

The recent Digital Asset Summit did not bring any bearish news, and investors are now focusing on positive developments such as the promise of stablecoin legislation from Congress and the confirmation of a BTC reserve. Additionally, the reduction in mainstream media coverage of the tariff war has allowed the stock market to recover, contributing to a more stable environment for cryptocurrencies.

At the time of writing, the BTC price was $84,295.18, up 2.4% in 24 hours. This recovery has helped to offset the losses incurred over the past week, although the 30-day loss of 14.27% remains. The market has seen shorter-term headwinds clear, with ETF investors returning to the scene. Spot Bitcoin ETFs have experienced an inflow of $785 million, indicating renewed interest from institutional investors. This stability, coupled with a positive regulatory shift, could potentially turn the $84,000 level into sustainable support for Bitcoin.

The bullish outlook extends to other altcoins as well. Ethereum (ETH) and Solana (SOL) have also shown signs of recovery, bouncing off their respective monthly lows. Solana, in particular, has formed a parabolic base, raising the prospect of a $1000 breakout. XRP has also gained attention following the resolution of the Ripple and SEC lawsuit, which has paved the way for positive growth. While analysts have varying price projections for top coins, the current outlook suggests a tempered selloff, with potential for further gains if the positive momentum continues.

However, there are concerns about a deeper correction for BTC price, as a key metric has hit two-year lows. This raises the possibility of continued pressure on the market, particularly if trading wars persist. The correlation between Bitcoin and equities markets also suggests that any downturn in stocks could negatively impact cryptocurrencies. Despite these challenges, the overall sentiment remains cautiously optimistic, with investors hoping for sustained growth in the crypto market.