Leading cryptocurrencies experienced a recovery on Monday, with Bitcoin edging up but struggling to surpass the critical $61,000 mark. The overall crypto market saw a spike in trading activity, with volumes soaring by 82% within a 24-hour period. Ethereum joined the upward trend, briefly reaching a high of $1,633 before retreating back below the $1,600 level.
Additionally, stocks within the cryptocurrency sector benefited from this positive momentum, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) posting gains of 12.60% and 1.77%, respectively. However, the broader cryptocurrency market faced significant turbulence, with over $300 million liquidated in the past day, primarily affecting short traders as per data from Coinglass.
Despite some upward movement, retail and whale traders on Binance reduced their long positions in Bitcoin, leading to a modest increase in open interest—up 0.80% over the last day. The prevailing sentiment across the crypto market remained “extreme fear,” as indicated by the Crypto Fear & Greed Index.
Among notable gains in the past 24 hours were TAC Protocol (TAC), which surged by 162.88%, Unibase (UB) at a 44.43% increase, and Re (RE) climbing 33.64%. The total global cryptocurrency market capitalization stood at $2.2 trillion, reflecting a slight decline of 0.79%.
In the stock market, the Dow Jones Industrial Average added 306.63 points, or 0.59%, closing at 52,182.74. The S&P 500 gained 1.18% to finish at 7,440.43, while the Nasdaq Composite saw a notable rise of 2.07%, settling at 25,820.14. Investors were buoyed by news of a scheduled meeting between President Donald Trump and Iranian officials aimed at addressing tensions following recent hostilities.
On the analysis front, on-chain metrics from CryptoQuant revealed that Bitcoin’s Long Term Holder Spent Output Profit Ratio (SOPR) was nearing 1, a condition usually indicative of significant buying opportunities. This ratio assesses whether long-term Bitcoin holders are selling at a profit or loss, currently suggesting many are moving assets at a loss.
Michaël van de Poppe, a well-known cryptocurrency analyst, expressed optimism for Bitcoin’s trajectory, emphasizing that a breakout above $61,000 appeared likely. He noted bullish divergences, hinting at potential upward momentum in the near future.
With shifting dynamics in both cryptocurrency and stock markets, analysts suggest that investors may want to remain vigilant, as conditions could yield significant opportunities moving forward.
