Cryptocurrency Market Recovers Following Risk-Off Sentiment

The cryptocurrency market has been recovering after a sudden sell-off driven by risk-off sentiment related to the Middle East war and the Federal Reserve's hawkish stance on interest rate cuts in 2026. Bitcoin (BTC), Ethereum (ETH), and XRP are showing signs of recovery, but institutional and retail demand have cooled down, leading to outflows from Exchange-Traded Funds (ETFs).

The price of Bitcoin has returned above $71,000 from lows clustered around $68,795, while Ethereum hovers above $2,100. Ripple (XRP) is gaining traction above $1.45, with its upside capped by initial resistance at $1.50.