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The cryptocurrency market is showing signs of recovery following last weekend’s plunge that saw Bitcoin plummet below $63,000.
At the time of publication, Bitcoin (BTC) rose 3.6% on the day to trade at around $66,610, based on CoinGecko data. However, it is still down more than 7% from its weekly high of $72,000.
The broader cryptocurrency market recovered along with the cryptocurrency market. bitcoin price, the top 20 cryptocurrencies (excluding stablecoins) by market capitalization have all risen over the past day. The market capitalization of all cryptocurrencies increased 4.2% to $2.54 trillion.
Among the top 10 cryptocurrencies, Solana (SOL) leads the way, up 7.9%, and is close behind. Ethereum The second-largest cryptocurrency, (ETH), rose 7.2%, while Toncoin (TON) rose 6.8%.
The weekend slump in cryptocurrency markets came amid widespread market upheaval due to heightened tensions in the Middle East between Iran and Israel. Investors flocked to safe haven assets such as gold, while more volatile assets such as cryptocurrencies declined.
Spot gold prices surged to a yearly high of $2,443 an ounce on Friday, according to data from Yahoo! Finance amid expected Iranian attacks on Israel. The attack took place on April 13, and almost all of the 300 drones and missiles launched by Iran were intercepted by Israeli forces.
Following the attack, broader markets appeared to have shaken off fears of a larger escalation as Iran deemed the issue “over” and US President Joe Biden urged Israel to exercise restraint. Oil prices fell on Monday after hitting their highest since October on Friday amid expectations of an Iranian attack.
In addition to macro geopolitical trends, Bitcoin is also facing the issue of its block rewards being halved soon.
Earlier this month, implied volatility in Bitcoin options surged as Kaiko Research analysts suggested in a recent report that “expectations for near-term volatility are rising.” Increased implied volatility means market participants are less confident about price direction, argued Kaiko Research analyst Adam McCarthy, a point that appears to have been confirmed over the past few days.
