The crypto market is showing signs of recovery after a crash that saw Bitcoin fall below $63,000 over the weekend.
At the time of publication Bitcoin (BTC) is up 3.6% on the day and is trading at around $66,610, according to data from CoinGecko. However, the price has continued to fall by over 7% over the week from a weekly high of over $72,000.
The broader crypto market has recovered in parallel Price of Bitcoin, with all top 20 cryptocurrencies by market cap (excluding stablecoins) rising over the last day. The market capitalization of all cryptocurrencies increased by 4.2% to $2.54 trillion.
Among the top 10 cryptocurrencies, Solana (SOL) is at the top with an increase of 7.9%, closely followed by ether (ETH), the second largest cryptocurrency, rose 7.2% and Toncoin (TON) rose 6.8%.
The weekend crypto market plunge came amid broader market turmoil as tensions escalated in the Middle East between Iran and Israel. Investors flocked to safe havens like gold, while more volatile assets like cryptocurrencies trended lower.
According to data from Yahoo! The spot gold price rose to a one-year high of $2,443/ounce on Friday. Finance, amid expectations of an Iranian attack on Israel. This attack took place on April 13, with almost all of the 300 drones and missiles fired by Iran intercepted by the Israeli military.
In the wake of the attacks, the broader market appeared to have dismissed fears of a major escalation, with Iran deeming the matter “closed” and US President Joe Biden urging Israel to show restraint. Oil prices fell on Monday after hitting their highest level since October on Friday in anticipation of an Iranian attack.
In addition to the macro geopolitical trends, Bitcoin is also struggling with the upcoming block reward halving.
Earlier this month, implied volatility for Bitcoin options rose sharply, with analysts at Kaiko Research noting that “expectations for near-term volatility are rising” in a recent report. The implied increase in volatility suggests market participants are becoming less confident about the direction of prices, argued Kaiko Research analyst Adam McCarthy, a sentiment that appears to have been borne out in recent days.
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