Cryptocurrency Market Sees Sharp Comeback with Bitcoin and Altcoins Rising

The cryptocurrency market has experienced a significant turnaround in recent days, with major cryptocurrencies rising sharply. This upward trend is attributed to a technical rebound from 'extreme fear' territory, where the Crypto Fear and Greed Index had dropped to 16.

Historically, when sentiment becomes this negative, markets often see a relief rally because prices are considered oversold. The total crypto market had fallen near $2.17 trillion before reclaiming its short-term moving average around $2.29 trillion, signaling that sellers were losing momentum and short-term buyers were returning.

Another factor contributing to the rally is the clearance of massive liquidations. Earlier, geopolitical tensions following US strikes on Iranian targets triggered heavy volatility across global markets. Crypto futures were hit hard, with roughly $515 million worth of leveraged positions being liquidated within 24 hours.