The cryptocurrency market staged a significant recovery on Friday and into the weekend, led by Bitcoin's bounce from a critical support level. After a wave of panic selling pushed market sentiment to extreme fear, Bitcoin climbed from a low near $60,074 to reclaim the $70,000 and $71,000 marks, posting a gain of nearly 8%. This rebound eased immediate fears of a deeper correction and cascading liquidations.
The recovery had a pronounced ripple effect across the altcoin market. Litecoin (LTC), often called "silver to Bitcoin's gold," surged approximately 8%, trading around $54. The meme coin Shiba Inu (SHIB) climbed about 7%, benefiting from renewed risk appetite. The rally was broad-based, with Ethereum (ETH) rising nearly 9% and Solana (SOL) jumping over 14%.
XRP emerged as a standout performer, posting a sharp recovery of over 20% at its peak, moving from below $1.15 to above $1.50 in less than a day. This surge was supported by significant whale activity, with data from Santiment showing over 1,389 transactions worth more than $100,000—the highest level in four months. Active addresses on the XRP Ledger also hit a six-month high.
Market analysts attribute the bounce to a combination of oversold conditions, traders closing short positions, and fresh liquidity. Tether minted nearly $2 billion in USDT over recent days, potentially providing short-term market support. However, caution remains prevalent. The Crypto Fear & Greed Index had plunged to 5, a level comparable to major historical crashes like COVID-19 and the FTX collapse, indicating the depth of the preceding fear.
While the rebound offers a window for repositioning, analysts warn it may not yet confirm a full trend reversal. Bitcoin faces key resistance in the $70,000 to $75,000 range, with a sustained move above $80,000 seen as necessary to restore confidence in a new bull phase. The market remains fragile, with prices still well below recent highs, suggesting potential for continued volatility.
