Crypto: Sentiment is recovering, Bitcoin finds support at ever-higher levels

Market Overview

The crypto market cap rose by 2.52% over the past 24 hours to $2.56 trillion. Among the most liquid coins, the top gainers are Basic Attention Token (+7.7%), Immutable (+7.6%) and Toncoin (+5.9%). Lagging are Tron (−0.74%), Uniswap (−0.68%) and Algorand (+0.2%).

The sentiment index is continuing its recovery, rising to 33, its highest level since 19 January. This remains in fear territory but is now close to neutral levels.

Bitcoin is trading at $76K, having found support at March’s highs during yesterday’s intraday pullback. This classic transformation of resistance into support points to further positive momentum in the coming days towards $86K, where the 200-day moving average and the support zone from late last year are concentrated.

News Background

According to CoinShares, global investments in crypto funds rose by $1.401 billion last week, hitting their highest level since mid-January. Investments in Bitcoin increased by $1.116 billion, in Ethereum by $328 million, in Chainlink by $5 million, and in Sui by $2 million. Investments in XRP fell by $56 million, and in Solana by $2 million.

Bitcoin has consolidated above the realised price of short-term holders at around $69,400, notes analyst Darkfost. This helps restore confidence among traders who have recently entered the market and reduces the likelihood of their rapid capitulation.

65% of Japanese institutional investors use Bitcoin to diversify their portfolios, according to a survey by Japanese financial holding company Nomura. 31% of respondents view the market outlook positively. Most investors plan to allocate between 2% and 5% of their capital to crypto assets over the next three years.

Strategy has made its largest Bitcoin purchase since November 2024, acquiring 34,164 BTC for $2.54 billion at an average price of $74,395 per coin. Strategy now holds 815,061 BTC, purchased for $61.6 billion at an average price of $75,527 per Bitcoin.

Over the past week, BitMine has increased its purchases to 101,627 ETH. The company’s reserves have exceeded 4.97 million ETH, representing 4.12% of the Ethereum supply. ETH is showing resilience amid geopolitical instability and is in demand in AI and asset tokenisation, noted BitMine CEO Tom Lee.

Investors withdrew over $13 billion from DeFi protocols in two days following Saturday’s $292 million hack of the Kelp, liquid restaking protocol.

The FxPro Analyst Team