The crypto market is showing signs of life again after a tough start to the week. Following Tuesday’s sharp sell-off, prices rebounded across the board. The total crypto market cap rose by nearly 5% in the past 24 hours, with gains led by some of the biggest names in the space.
Bitcoin is back above $103,000 after gaining around 4% today. Ethereum saw a bigger move, jumping almost 10% to reclaim the $3,400 level. XRP also made headlines by climbing 10% and overtaking BNB in market cap.
Other major tokens like Solana, Dogecoin, Cardano, and BNB all posted significant daily gains, ranging between 5% and 8%. It was a broad-based move, fueled by a wave of buying after earlier panic selling.
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Sentiment Improves, But Fear Remains
Despite the green charts, overall sentiment hasn’t fully recovered. The Crypto Fear and Greed Index ticked up slightly from yesterday but remains in “extreme fear” territory at 23. That shows how cautious traders still are after recent losses.
Even with today’s gains, most major assets remain down heavily on the weekly and monthly charts. Bitcoin and Ethereum are still down around 7% and 11% for the week, and most altcoins have double-digit losses for the past 30 days.
In other words, this is a bounce – not a full reversal. Investors are still worried, and trading volumes suggest that many are treating this move as a temporary relief rather than a confirmed trend shift.
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Reasons Behind the Rebound
Analysts point to a mix of short-term positioning and earlier oversold conditions as the main drivers. Yesterday’s sell-off wiped out many leveraged positions, and with prices now lower, some investors may have seen an opportunity to re-enter.
Ethereum’s strong performance today is also being linked to renewed accumulation on-chain and increased trading activity. XRP’s move has been associated with growing optimism around its future use cases, fueled by recent partnership with Mastercard.
There may also be a macro element. U.S. stocks moved higher today as traders responded to fresh employment data and growing talk of a possible rate cut in December. If investors start to see risk assets more positively again, crypto may continue to benefit from that shift.
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Looking Ahead
Whether this bounce holds will likely depend on a few key factors. Traders will be watching for Thursday’s CPI data and any further signals from the Federal Reserve. A clear sign of lower inflation could push the market further into recovery mode.
