Today the crypto market staged a powerful rebound, with major digital assets climbing in unison within hours, pushing the global crypto market cap above $2.4 trillion. Bitcoin led the charge, breaking through $71,000 and gaining nearly 5% in five hours, adding roughly $70 billion in market value in a single day. Ethereum rose alongside to surpass $2,050, up 5.6% with approximately $14 billion of market cap added. XRP hovered near $1.40, while other blue-chip altcoins like Solana and BNB also closed higher, collectively injecting over $100 billion of fresh market value in a short span.
The rebound’s key catalyst was a massive wave of short liquidations. As Bitcoin cleared the $70,000 resistance, numerous leveraged shorts betting on a decline were forced to close, sparking a cascade of buy orders. Market data show nearly $110 million in daily short liquidations network-wide, amplifying the upward momentum.
On-chain data indicate selling pressure from large holders has eased significantly. CryptoQuant’s metrics reveal that net Bitcoin inflows to major exchanges have shrunk to around 28,235 BTC—a historical low—suggesting investors are choosing to HODL rather than cash out, providing a solid base for prices.
Marginal improvements in the macro backdrop have also bolstered sentiment. Bitcoin’s correlation with the S&P 500 has climbed to 63%, reflecting its growing identity as a risk asset. Fed officials’ comments hinting at a potential pause in rate hikes eased fears of tightening liquidity, drawing capital back into high-risk assets, with crypto among the beneficiaries.
Despite the broad-based gains across DeFi News assets like Ethereum and XRP, the current altseason index sits at only 32, implying Bitcoin still drives the market and rotation hasn’t fully materialized. The next critical test is whether Bitcoin can hold above $72,000—success may open the door to challenges in the $78,000 to $80,000 zone, while failure could prompt a pullback toward $68,000 support.
This comprehensive rebound not only showcased the power of technical breakouts but also highlighted the convergence of market sentiment and macro expectations, offering vital clues for the path ahead.