The cryptocurrency market saw a notable rebound during today's trading, with Bitcoin surging to nearly $70,000 and ending a three-session losing streak. This rise was fueled by improved investor risk appetite and a recovery in technology stocks on US markets.
Market performance and cryptocurrencies
In morning trading in New York City, the world's largest cryptocurrency jumped more than 8.5% to reach levels close to $69,500 , marking its biggest daily gain since February 6. The rally wasn't limited to Bitcoin; it extended to altcoins as well, with Ethereum rising more than 12% to trade at $2,085.
Smaller cryptocurrencies also performed strongly, with Solana gaining nearly 13% and XRP rising by 7%, reflecting a general sense of optimism across the digital market.
Driving factors: Technology and politics
Analysts attribute this rise to the close correlation between cryptocurrencies and technology stocks, which has fueled a slight recovery in the high-risk asset market. In this context, Caroline Moron, co-founder of a digital asset trading company, noted that this surge reflects a return to "buy the dip" behavior after a prolonged sell-off, emphasizing that Bitcoin's recovery to the $70,000 level would be a game-changer and restore confidence among traders.
On the political and economic front, markets reacted positively to President Donald Trump’s “State of the Union” speech, in which he defended his economic performance, sending reassuring signals to investors and contributing to an overall improvement in market sentiment.
Context of fluctuations and price history
Despite this recovery, caution still prevails among investors, especially after the recent sharp market fluctuations. On February 6, Bitcoin suffered a steep 13% loss, its biggest daily drop in nearly four years.
It is worth noting that the current price is still far from the currency's all-time high of $127,000 at the beginning of last October. The currency has fallen by about 50% from that peak, putting the market to a real test of its ability to recover and return to an upward trajectory amidst global economic fluctuations.
