Bitcoin has staged a sharp recovery, pushing above $69,000 on Wednesday after bulls aggressively purchased the dip near $60,000. This rebound follows a period of intense volatility where BTC briefly sank below $63,000, dragging the broader market down. The recovery is supported by significant institutional interest, with Bitcoin exchange-traded funds (ETFs) recording net inflows of $257.7 million on Tuesday—the largest single-day inflow since February 6.
Analysts point to a potential disconnect between Bitcoin and traditional equities. On-chain data provider Santiment noted that BTC's correlation with stocks has broken down over the past six months, with the S&P 500 rising 7% while Bitcoin fell 43%. However, they suggest this divergence may not last, and if BTC historically tracks equities during economic expansions, it "may have significant room to catch up." Not all signals are bullish; Glassnode highlighted that Bitcoin's realized profit/loss ratio (90-day moving average) has slipped below 1, a level that historically precedes at least six months of loss realization before recovery.
Major altcoins have joined the recovery. Ethereum (ETH) turned up from the $1,800 level, with bulls attempting to hold it within a $1,750 to $2,111 range. XRP (XRP) saw a sharp upward move, reaching its 20-day EMA at $1.46. The recovery extends to other large caps: BNB rebounded from $577, Solana (SOL) recovered after dipping below $76, and Dogecoin (DOGE) turned up from $0.09.
Fundamental narratives for leading assets remain strong. XRP, with an $81 billion market cap, is reinforced by Ripple's deepening commitment to the XRP Ledger (XRPL) as a base layer for stablecoins and tokenized real-world assets. The United Nations Capital Development Fund and the White House have flagged XRP's potential for modernizing cross-border payments. Following U.S. regulatory approval of spot XRP ETFs, analysts suggest a developing bullish flag formation could drive XRP to $5 by Q2.
Ethereum, the DeFi leader with a $219 billion market cap and ~$52 billion in Total Value Locked (TVL), could test the $5,000 resistance as early as June in a renewed bull cycle. Bitcoin, after a 50% correction from its October all-time high of $126,080, is supported by its "digital gold" narrative and increasing institutional exposure. Expectations of clearer U.S. crypto regulation and potential political developments, such as a U.S. Strategic Bitcoin Reserve, could reignite bullish momentum.
