The crypto market is showing signs of recovery after Bitcoin and Ethereum saw price increases on Monday. Despite recent gains, the question remains whether the peak of the year has already been reached.
Bitcoin and Ethereum, the two leading cryptocurrencies, saw significant price increases on Monday. Bitcoin climbed 3.2% to reach a value of around $87,400, while Ethereum gained 3.7% to approximately $2,080. This recovery follows weeks of intense selling that had put pressure on the market.
David Morrison, a senior market analyst at Trade Nation, noted that Bitcoin was trading at its highest level in over two weeks. He explained that technical indicators suggest Bitcoin has formed a base to continue rising. Despite these positive signals, the question remains whether the market has already reached its peak for the year.
Another factor influencing the market is the ETF inflows that resumed last week. These inflows could indicate long-term capital, which is more stable than short-term speculation. Markus Thielen of 10x Research emphasized that there is currently no clear catalyst for an immediate parabolic rally, which changes the risk assessment.
The recent market movements have also affected larger publicly traded crypto companies such as Coinbase and Microstrategy. Coinbase is expected to open 4.2% higher, while Microstrategy rose 4.9% in pre-market trading. These developments demonstrate how closely linked these companies’ share prices are to the performance of cryptocurrencies.
Political uncertainty in the US is also impacting the crypto market. Following the election of Donald Trump as US president, the market initially experienced a rally, but uncertainty about his economic policy decisions, particularly regarding tariffs, has led to a decline. These uncertainties are also reflected in the tech-heavy Nasdaq index, which fell 8.9% last month.
Overall, the crypto market remains volatile, and the coming weeks could be crucial in determining whether Bitcoin and Ethereum maintain their recent gains or whether further setbacks are imminent. Analysts will be closely monitoring developments for clues about the market’s future direction.
[newsletter_form lists="1"]
