Bitcoin up 3.7%, crypto market rebounds after sharp drop.

Bitcoin risesSignificant today after the crypto market experienced a sharp correction in the last few days. Major digital assets such as Bitcoin, Ethereum, Solana, and XRP have recorded price surges indicating the return of investor optimism toward the global digital asset market.

This surge comes after the massive selling pressure that briefly shook the market last week. Analysts assess that the rebound indicates that investors have returned to the market to buy at low prices after a period of high volatility.

A New Direction for the Global Crypto Market

Over the past few days, crypto market capitalization briefly fell more than 8%, triggering concerns about a prolonged correction. However, in today’s trading, all major crypto indices reversed course. Bitcoin rose about 3.7% to around US$115,460, while Ethereum also gained 3.2% to the level of US$3,410.

This rise shows that market sentiment is starting to improve. Some analysts at Bloomberg and CoinDesk called this momentum a 'mini relief rally' — a brief rise after a massive sell-off that is usually followed by price consolidation.

Bitcoin Performance and Market Sentiment

MovementBitcoin risesThis time is driven by several fundamental and technical factors. According to data from CoinMarketCap, Bitcoin trading volume has increased by almost 18% in the last 24 hours, signaling increased buying activity from institutional investors.

Additionally, last week's U.S. inflation data that declined slightly also supported the risk asset markets. Many investors view crypto as a hedge against global economic uncertainty, especially as the Federal Reserve's monetary policy begins to loosen.

Some analysts also estimate that Bitcoin's price could break through resistance at the US$118,000 level if buying momentum continues. However, they warned that volatility remains high, and the market has not yet fully recovered from the technical pressures caused by the liquidation of large leveraged positions in the previous week.

Ethereum and Solana Follow the Rise

Not only Bitcoin, Ethereum also rose. This second-largest digital asset rose more than 3% to US$3,410. This strengthening was driven by the increasing activity on the Ethereum network, including DeFi projects and the tokenization of real-world assets (RWA).

Solana also experienced a significant surge of around 5%, breaking through the US$175 level. Solana's rise is attributed to high transaction volume on NFT platforms and dApps that have become active again after slowing down briefly in September.

Meanwhile, XRP rose 2.4% after coming under pressure following news related to Ripple's legal proceedings with the U.S. Securities and Exchange Commission (SEC). Although the case has not been fully resolved yet, investors are beginning to view Ripple's chances of winning in the long term as increasingly likely.

Global economic dynamics influence cryptocurrency movements.

Global macroeconomic conditions play a major role in price fluctuations of digital assets. The decline in the US dollar at the start of this week, along with the stabilization of US bond yields, is creating room for investors to return to risk assets such as cryptocurrencies.

The Role of the Fed and Inflation

One of the main drivers of this rebound is the market's view that the Federal Reserve will delay its plans to raise interest rates. Latest data show U.S. annual inflation has fallen to 2.7%, lower than the forecast of 2.9%.

A looser monetary policy usually has a positive impact on digital assets because it increases market liquidity. Analysts estimate that if this trend continues, institutional capital inflows could once again surge into the crypto market.

Institutional investor interest has increased.

Data from the Deribit and CME platforms show a surge in Bitcoin and Ethereum options activity. Large investors appear to be starting to take long positions, indicating confidence that prices still have room to rise.

Several major investment firms such as BlackRock and Fidelity are also reported to have increased their exposure to crypto assets through spot Bitcoin-based ETFs that were newly approved earlier this year. That ETF serves as an entry point for conservative investors to participate in the crypto market without having to buy digital assets directly.

Asian and European market reactions

Asian markets have become one of the main drivers of gains today. Trading activity in South Korea and Japan surged after Bitcoin's price breached the US$115,000 level again. In Europe, investors are also showing renewed interest, especially after the Bank of England postponed the rate hike for the third time this year.

With a supportive macro backdrop and rising investor interest, many analysts expect the positive trend to continue at least through the end of this quarter.

Is this rebound sustainable?

AlthoughBitcoin risesQuite sharp, most experts warn that the rally is currently still technical. They assess that the market needs additional confirmation in the form of new capital inflows and price stability over the next few days.

Technical Analysis and Risk of Correction

Technically, Bitcoin is facing resistance in the range of US$118,000 to US$120,000. If it fails to break through that area, the price could fall back to the support zone at US$110,000.

Some analysts warn of the potential 'bull trap', in which a temporary rally could lure new buying before prices correct again. However, if the positive momentum persists, Bitcoin has a chance to return to the medium-term uptrend toward US$125,000.

Perspective of Industry Players

The CEO of Binance, Richard Teng, in his interview with CNBC, said that the current volatility is a natural part of a maturing crypto market. He emphasized that investors must focus on the fundamentals of blockchain technology that are continually evolving.

Meanwhile, an analyst from Ark Invest estimates that if institutional adoption continues to rise, Bitcoin could reach US$150,000 in the next 12 months. However, they also emphasize the importance of risk management in the face of global uncertainty, especially with the potential for new fiscal policies from the US and Europe.

Prospects for Digital Assets at Year End

With a trendBitcoin risesToday, many investors are starting to become optimistic again. The year 2025 could be an important period for the crypto market because a number of major projects in the fields of blockchain, AI, and real-world asset tokenization are entering the launch phase.

On the other hand, global regulations are also becoming clearer. The European Union, through the MiCA policy package (Markets in Crypto Assets), has begun to be implemented, while the United States is accelerating its regulatory framework for digital assets.

The clarity of this regulation is expected to bring long-term stability to the crypto industry. For retail investors, this is a signal that digital assets are increasingly being accepted more widely in the global financial arena.

increaseBitcoin risesA rise of as much as 3.7% today has become an early signal that the crypto market is beginning to recover from the pressure of a sharp correction. With the support of more stable economic data and increasing institutional interest, this positive trend has the potential to continue.

However, investors are still advised to exercise caution in the face of high volatility and to conduct in-depth research before making investment decisions. To read more in-depth analysis of global economic trends and the movement of digital assets, visit the channel.Economics & FinanceatInsemination.