$3 Trillion Crypto Market Regains Momentum Despite Macro Pressures
The cryptocurrency market has regained its footing, surpassing $3 trillion in total value for the first time since January. Bitcoin has been leading the charge, breaking above $87,000 despite a Fed hike and Treasury yields around 5%. Ryan Lee, chief analyst at Bitget, notes that the crypto market's recovery is a testament to strong spot and ETF demand.
According to Lee, the key question now is what sustains the market from here. Open interest and funding have risen alongside prices, indicating growing leverage as traders chase the recovery. While short covering has contributed significantly to the rally, forced buying can eventually fade, leaving spot demand to carry more of the move.
Lee also highlights that Bitcoin's breakout despite macro pressures is a notable signal in the current rally. However, he cautions that continued ETF and spot demand alongside stabilizing leverage would suggest the rally still has a solid spot-driven base. If open interest and funding continue to accelerate faster than spot demand, the risk of a leverage-driven pullback increases.
John O'Loghlen, managing director at Coinbase, attributes recent momentum to improving market sentiment, continued institutional engagement, and growing confidence in the digital-asset ecosystem. He sees digital assets becoming increasingly integrated into the global financial system, supported by stronger market infrastructure and ongoing progress toward regulatory clarity.