#BitcoinBouncesBack Bitcoin, the world's largest cryptocurrency, experienced an impressive rally today. What do experts say about this market surge?

With renewed risk appetite in the cryptocurrency market, Bitcoin approached the $70,000 level.

Ending a three-day decline, the leading crypto asset rose as much as 8.5% during the day, reaching approximately $69,500. This increase stood out as the strongest intraday gain since February 6. The last time Bitcoin tested the $70,000 level was on February 16.

Ethereum, the second-largest asset in the market, also performed strongly, rising around 12% to approximately $2,085. On the altcoin side, Solana gained about 13%, and XRP increased by 7%.

Caroline Mauron, co-founder of Orbit Markets, stated that the rally may have been driven by buying activity following a prolonged sell-off, and that surpassing the $70,000 level could change the market narrative.

In global markets, attention has shifted to the tech giant. Ahead of Nvidia’s earnings report, which is seen as a barometer for AI-themed stocks, limited recovery was observed in risky assets. After US President Donald Trump’s address to the nation, a short-term relief rally occurred in the market. However, it was notable that Trump did not mention digital assets in his speech.

Daniel Reis-Faria, CEO of ZeroStack, noted that demand from the US remains weak but investors are turning to altcoins. He stated that Bitcoin is now traded as part of a broader market system. He added that during periods of liquidity tightening, volatility tends to increase, and projects that generate real returns may be more resilient compared to assets rising solely on momentum.

Nevertheless, the market remains cautious. Since reaching an all-time high of around $127,000 in early October, Bitcoin has fallen by nearly 50%. Jake Ostrovskis, head of OTC trading at Wintermute, said that unless the price permanently stays above $75,000, recent rallies should not be overinterpreted.

According to on-chain data provider Glassnode, approximately 9 million Bitcoin in circulation, or about 45% of the total supply, are trading below the average purchase cost of investors. This situation weakens rallies as investors tend to sell at a loss during each upward move.

FxPro’s chief market analyst Alex Kuptsikevich compared the current situation to 2022, highlighting the sharp decline followed by months of sideways movement and subsequent recovery. Kuptsikevich believes that a similar scenario could require time to reach new highs.

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