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Bitcoin (BTC-USD) is bouncing to its highest level in over a month in early Monday morning trading, as the global crypto market cap tops $1T again in a broader risk-on day.
Over the past 24 hours, bitcoin (BTC-USD), the world’s largest digital token by market cap, is climbing 3.2% to $22.05K and ethereum (ETH-USD) is jumping 8.9% to $1.47K as of shortly before 9:00 a.m. ET. Still, both coins are off well over 60% from their November 2021 peaks.
As for the largest percentage winners among major cryptos during intraday trading, cardano (ADA-USD) +7.8%, polygon (MATIC-USD) +16.6%, avalanche (AVAX-USD) +9.3% and ethereum classic (ETC-USD) +17.7% all are experiencing relief.
The crypto upswing comes as stock futures point to a higher open, with contracts on the tech-heavy Nasdaq (NDX:IND) +1.1%, S&P 500 (SPX) +0.8% and Dow Jones (INDU) +0.8%. Bitcoin (BTC-USD), in particular, is up over 10% since headline consumer price inflation came in at a fresh 40-year high last week.
“When the market starts reacting positively to negative news, this is a signal that a local bottom could be in for now, as fear may have caused the news to be priced in,” GlobalBlock analyst Marcus Sotiriou wrote in a note.
While cryptos are seeing somewhat of a recovery, the move may not be a sustainable relief rally like most are hoping as financial contagion effects triggered by the collapse of algorithmic stablecoin TerraUST (UST-USD), crypto exchange Celsius and crypto hedge fund Three Arrows Capital keep spreading.
“Given the severely negative performance in Q2, it is unsurprising that a ‘relief’ bounce has occurred. We believe the market will continue range-bound over the coming months,” CryptoCompare analyst David Moreno wrote in a note to clients, as reported by CNBC.
Previously, (July 15) crypto venture capital funding fell 26% in H1 2022, but the number of deals rose.
