The crypto market recorded minor gains over the past seven days. That comes after weeks of volatility, attracting substantial capital inflow. Finbold data stated that the global crypto market value added $162 billion from 31 January to $1.9 trillion on 6 February. Remember, the cryptocurrency market cap hovered around $1.7 trillion as January ended.
Large-cap currencies like BTC led to the broad market recovery. Bitcoin experienced attractive gains after struggling for breakouts in most of January’s sessions.
The global market plummeted as market participants remained worried about Fed increasing interest rates. Moreover, the industry’s correlation with the stock market contributed to the downtrends as most equities faltered during January sessions.
Bitcoin Explodes Past $40K
Bitcoin leads the market recovery after an impressive climb past the critical mark of $40,000. While writing these lines, the leading crypto changed hands at $41,500, following a 10% urge over the past seven days.
Bitcoin saw an overnight surge as tech stocks witnessed a revival. Meanwhile, the crypto space has displayed a high correlation with tech stocks over the latest months. BTC’s leg up triggered substantial surges within the alt marketplace.
The 2nd-largest coin, Ethereum, gained about 15% within the previous seven days. At the same time, Solana (+19%), Avalanche (+10%), and Polkadot (+13%) recorded double-digit upticks.
Recently, technical indicators have suggested upside reversals for BTC beyond the $40K level. For example, reports by Finbold suggest BTC saw multiple bullish and bearish price actions, forming a falling wedge. Historically, this setup highlights an imminent upward surge.
As BTC recovered, the past 24 hours had nearly 72,700 trade liquidates, leading to $270.8 million liquidations across the crypto spectrum.
Bitcoin still sees adoption by different sectors despite significant retracement in the crypto world in 2022. Finbold’s report shows BTC was an alternative option as GoFundMe suspended Canadian truck drivers’ donation account, citing COVID restriction.
With the latest upward movements, market players will focus on whether the broad market and Bitcoin will sustain the upside momentum. What are your thoughts in this regard? Feel free to use the comment area below to leave your reply.