Market Overview

The crypto market capitalisation rose by 4.53% over the past 24 hours to $2.52 trillion. The rise in cryptocurrencies was driven by an impressive recovery in risk appetite in traditional financial markets, with the Nasdaq 100 up 2.5% from its opening levels. The dayā€™s top performers were Algorand (+9.4%), Ethereum (+7.6%) and Aptos (+6.2%). Underperforming the market were Dash (āˆ’6.3%), Zcash (āˆ’3%) and Tron (+0.2%).

Fig. 1. The crypto market is testing last monthā€™s highs.

The Fear and Greed Index surged to 21 (Extreme Fear) from 12 yesterday ā€” the largest single-day jump in recent weeks. The indicator remains in the extreme fear zone, though the trend is clearly improving in line with the marketā€™s rise.

Fig. 2. Crypto market sentiment has risen sharply.

Bitcoinā€™s price has surpassed $74K, returning to last monthā€™s highs and beginning an assault on the 61.8% Fibonacci retracement level from the Januaryā€“February slump. A victory for the bulls in this battle will pave an easier path to the $87Kā€“$90K range, where the 200-day MA and the Novemberā€“January support are located. Optimism in global markets increases the chances of reaching these heights in the coming days, but before rising above $90K, Bitcoin may require a lengthy period of consolidation and cooling off.

Fig. 3. Bitcoin is once again testing the boundaries of the Fibonacci retracement.

News Background

According to CoinShares, global investment in crypto funds rose by $1.118 billion last week, the highest since mid-January. Investments in Bitcoin increased by $872 million, in Ethereum by $197 million, and in XRP by $19 million. Investments in Solana fell by $3 million, and in Sui by $2 million.

CoinShares suggests that the significant inflow of funds was driven by easing geopolitical tensions and weaker-than-expected US consumer price index data. The Bitcoin short position segment recorded its largest inflow since November 2024, indicating continued hedging activity.

Institutional investors have strengthened their presence in the crypto market this year, whilst retail investors have been exiting it, notes Exodus. According to MN Fund founder Michael van de Poppe, retail investors are no longer interested in cryptocurrencies; the current cycle is institutional, and it will last longer.

Bitcoin mining is becoming increasingly centralised, with computing power concentrated in the hands of a few major players. Meanwhile, the artificial intelligence sector is moving in the opposite direction, notes Galaxy Research.

Strategy has increased its BTC purchases by almost threefold over the past week. The company bought an additional 13,927 BTC last week for $1 billion ā€” at an average price of $71,900 per coin. Strategy now holds 780,897 BTC, purchased for $59 billion at an average price of $75,600 per Bitcoin.

BitMine acquired a further 71,524 ETH for $156.4 million over the past week. The companyā€™s reserves have exceeded 4.8 million ETH ā€” representing 4.04% of the Ethereum supply.

The FxPro Analyst Team