Crypto Market Bounces Back Amid Easing Inflation Fears

The crypto market has rebounded strongly, with Bitcoin reclaiming its $66,000 mark and Ethereum surpassing $1,900. The total market capitalization has climbed back above $2.2 trillion, gaining roughly 1.7% in the last 24 hours.

This shift is attributed to easing inflation expectations, which have cooled despite ongoing geopolitical tensions. Crude oil prices have decreased, removing a major overhang on the market and reducing fears of a second inflation wave.

The return of institutional demand is also driving this rally, with US spot Bitcoin and Ethereum ETFs reporting consecutive net inflows. This influx of capital has rotated into liquid crypto assets, indicating that money is flowing back into the space rather than fleeing it.