The digital currency ecosystem is in a recovery mode today with Bitcoin (BTC) leading the trend. The combined crypto market cap has jumped by over 7% in 24 hours to $2.37 trillion.Â
Bitcoin and Altcoin Performance
Bitcoin is leading the market rally after recording an 8.26% surge in 24 hours to $63,967.21. This reboot is an important one as BTC has traded below the $60,000 psychological level since the start of this month.
The Bitcoin rebound has triggered a related rally for other altcoins as well. Ethereum (ETH) is up 5.72% to $3,143.23. With this, Ethereum has cleared up the deficit it accrued over the past week and is now up 0.37%.
Solana (SOL) is up 7.96% to $147.51, and Binance Coin (BNB) has jumped 4.85% to $591. To complement this rally, altcoins like XRP, Cardano (ADA), and Dogecoin (DOGE) are also up 3%, 3.93%, and 19.04% to buck previous negative trends. The growth of DOGE in particular was fueled by a rumor that Tesla has updated its payment method to include the coin. Such market sentiments is known to historically impact Dogecoin’s volatility to drive price higher.
The 3 Key Market Catalysts
The encompassing recovery the market is experiencing comes with crucial fundamental boosts. First, the losses of the past few months underscored an extended drawdown with bears hitting the floor. Before this recovery, Bitcoin’s Relative Strength Index (RSI) clocked in at 26.27 as of May 1. With this value, the market was oversold and a trend change was imminent.
Secondly, the bullish sentiment that trailed the end of outflows for Grayscale Investment’s spot Bitcoin ETF product – GBTC. As reported earlier by BGEcrypto, Grayscale’s GBTC recorded an inflow of $63 million on April 3, ending its more than 80-day losing streak.
The third major catalyst is the ripple effect of Bitcoin dominance. While the key fundamentals were Bitcoin-focused, other altcoins had to join because they maintain a strong correlation with the coin.
