The Crypto Market Relieves Geopolitical Uncertainty

The calm in the Middle East triggers a multi-million dollar rebound in the crypto world, defying latent fear and recovering key levels.

The global cryptocurrency market witnessed a significant rebound, injecting an impressive $64.1 billion into its total market capitalization, which now stands at $3.12 trillion. This respite comes just as geopolitical tensions in the Middle East, which threatened to strangle global oil supplies, showed signs of easing, generating a sigh of relief in financial markets.

Market capitalization not only jumped, but demonstrated a recovery by firmly bouncing off the 200-period Exponential Moving Average (EMA200), surpassing the previous day's close / TradingView

Geopolitics Takes an Unexpected Turn

Recent concerns about a possible impact on global oil supplies quickly dissipated. An Iranian attack on a US base in Qatar, which fortunately was empty, did not result in the feared closure of the strategic Strait of Hormuz. This news was a balm for the markets, causing a more than 5% drop in the price of oil, with WTI trading at $70, closing a bullish opening gap that had generated nervousness.

Bitcoin and Ethereum Lead the Crypto Market Recovery

This optimism immediately translated into the crypto market. Market capitalization not only jumped, but also demonstrated a recovery by firmly bouncing off the 200-period Exponential Moving Average (EMA200), surpassing the previous day's close. While the market is still trading below the EMA50, a sign of a medium-term bearish trend, the support of the EMA200 reinforces the long-term bullish outlook.

Bitcoin (BTC), the leading cryptocurrency, was the star of this resurgence, rising 3.54% to trade at $102,876, consolidating its return above the long-awaited $100,000 mark. Ethereum (ETH) was not far behind, posting 5% gains in the last 24 hours and reaching a price of $2,296.

Fear Persists, but Bitcoin Gains Dominance

Despite the price rebound, overall market sentiment remains cautious. The CoinMarketCap (CMC) Fear and Greed Index, a key tool for measuring investor sentiment, remains at 38 points, indicating a prevailing sense of fear.

However, in this scenario, Bitcoin consolidated its position. The Altcoin Season Index, which measures the strength of altcoins against Bitcoin, registers just 15 points, suggesting that we are in a phase of BTC dominance. In fact, Bitcoin's dominance over the rest of the crypto market reached an impressive 64.8%, confirming its role as a safe haven and driving force of the ecosystem in times of uncertainty.

Disclaimer: The information contained in this news is for informational purposes only and does not constitute financial advice. The cryptocurrency market is highly volatile, and trading carries significant risks.