Bitcoin Reclaims $3 Trillion Market Cap as Rally Gains Momentum

The cryptocurrency market has seen a significant rebound in recent times, with its total market capitalization surpassing $3 trillion for the first time since January this year. Bitcoin has been leading the charge, breaking above $87,000 despite a Federal Reserve rate hike and rising Treasury yields.

Ryan Lee, chief analyst at Bitget, notes that Bitcoin's breakout has changed sentiment across the wider market. He attributes the recovery to stronger spot and ETF demand, which provided initial support before short covering accelerated the move.

The rally is gaining momentum, but there are concerns about leverage building in the market. Open interest and funding have risen alongside prices, suggesting that traders are chasing the recovery with increasing leverage. This could eventually lead to a pullback if spot demand fails to keep pace.