The cryptocurrency market has regained the $1 trillion mark over two months later, offering relief to long-term inventors who witnessed the market wipe out over $2 trillion in wealth in less than ten months. Memecoins, layer 1 blockchain network tokens, other utility tokens, as well as Bitcoin and Ethereum, have shown an upward trend over the past two days after a long winter. A question arises here. Has the market hit bottom? Is this the right time to invest?
Global cryptocurrency market capitalization increased by 2.50%, reaching $1 trillion in global cryptocurrency market capitalization. Over the past two days, Bitcoin is up more than 5%, Ethereum is up more than 10%, and memecoins such as Dogecoin and Shiba Inu have also seen a double-digit recovery. Solana, Cardani and Avalanche are also showing his double-digit gains.
The CoinDCX Crypto research team told Business Today:
They added, “About $1.15 billion worth of liquidations have taken place in the last 24 hours, with about 90% of that figure indicating short positions as the market showed bullish signs.”
Why did the market rebound?
According to CoinDCX’s research team, momentum in the U.S. stock market combined with expectations of an easing rate hike by the U.S. Federal Reserve is driving the current rally.
“The strong earnings report in the U.S. equity market has spurred hopes that the Fed may ease its relentless plan to raise rates aggressively, leading to a rally in both equity and crypto markets and an overall The cryptocurrency market capitalization has surpassed $1 trillion again,” they said.
Mahin Gupta, founder of Liminal, a digital wallet infrastructure platform, pointed out that the rise could also be attributed to strong earnings results from cryptocurrency companies such as Coinbase and Microstrategy.
he said: Publicly traded crypto-centric companies such as Coinbase and Microstrategy have also reported positive earnings, creating positive sentiment within the crypto community. ”
Is this the right time to invest?
Despite the market’s positive momentum, experts believe that the cryptocurrency market has not bottomed out and that investing now is not the right decision.
Vaibhav Gupta, an active investor in the Web3 startup, told Business Today: Therefore, this could be a short-term bottom in a short-term uptrend, and investors could expect quick profits. ”
He added, “Investors and VCs saw this bailout rally, took small positions and started investing.”