On Monday, major cryptocurrencies experienced significant upward movement, paralleling a robust rebound in the stock market.

In-Depth Analysis: Bitcoin surged to an impressive high of $57,884 by the evening hours, though it later retreated to the $56,000 range due to profit-taking activities. This rise allowed Bitcoin to recover from Friday’s sharp decline, which had seen its value plummet below the $53,000 mark.

Ethereum, the second-largest cryptocurrency by market capitalization, demonstrated a more modest rally. Despite the upward trend, Ethereum struggled to break past the $2,400 threshold.

In the past 24 hours, over $128 million was liquidated from the cryptocurrency market, with short positions accounting for a substantial 72% of these liquidations. Bitcoin’s Open Interest (OI) saw a 3.28% increase within this timeframe. The simultaneous rise in both OI and price suggests a significant influx of new capital into the derivatives market.

Market sentiment remained within the “Fear” category according to the Cryptocurrency Fear & Greed Index, indicating a considerable level of Fear, Uncertainty, and Doubt (FUD) among investors.

Top Performers (24-Hours):

The global cryptocurrency market capitalization reached $2.01 trillion, marking a 2.80% increase over the past 24 hours.

In parallel, stocks also staged a strong recovery following last week’s downturn. The Dow Jones Industrial Average surged by 484.18 points, or 1.20%, closing at 40,829.59. Similarly, the S&P 500 climbed 1.16% to end at 5,471.05, and the tech-centric Nasdaq Composite gained 1.16%, finishing at 16,884.60.

A notable contributor to this stock market rebound was Nvidia Corp. (NVDA), which saw its shares rise by 3.54%, recovering some of the losses it had incurred during the previous week.

Investors are now eagerly awaiting the release of August’s consumer and producer price index reports, scheduled for later this week. These reports are anticipated to provide further insights ahead of the Federal Open Market Committee (FOMC) meeting next week, where decisions regarding interest rate adjustments will be made.

Insights from Analysts:

Cryptocurrency analytics firm Santiment noted that despite Bitcoin’s recent price uptick, market sentiment for the leading cryptocurrency remained negative. The sharp decline on Friday had led to an increase in short positions, which subsequently triggered a mini-rally as liquidations occurred.

Santiment commented, “Trader FUD and doubt in this rally will only fuel prices higher.”

Renowned cryptocurrency analyst Rekt Capital utilized historical data to predict when Bitcoin might reach its next bull market peak. By analyzing the time taken for Bitcoin to peak after halving events in the previous cycles of 2015-17 and 2019-21, the analyst forecasted that Bitcoin’s peak in the current cycle could occur approximately 518-546 days post-halving. This timeline suggests a potential peak around mid-September to mid-October 2025.

Additional Reading:

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