The cryptocurrency market has turned green today, with the current momentum starkly contrasting what happened last week when the prices plunged as fear gripped the market.
The global cryptocurrency market capitalization has increased by 1.6% in the last 24 hours to above $2.2 trillion, with most coins posting gains.
Despite the recent gains, the cryptocurrency market remains in fear. The Crypto Fear and Greed Index is currently at 28, showing that the market remains fearful.
However, traders are taking a leap and taking advantage of the recent dip to accumulate more coins.
Cryptocurrency Market Turns Green
The top ten largest cryptocurrencies by market capitalization are trading in the green today. Bitcoin is up by nearly 2%, with its recent performance signaling that more bullish gains could come.
Ether and Solana have also posted slight gains of nearly 1% each, while BNB has gained 2.3%. XRP and Toncoin have also increased by 1.4% and 0.7%, respectively.
Dogecoin continues to underperform compared to the other meme coins. DOGE is up by 1.2%, while the total meme coin market capitalization has soared by nearly 4% to $45 billion.
The recent gains have triggered liquidations of short traders across the cryptocurrency market. Data from Coinglass shows that over $55 million in shorts have been wiped from the crypto market in the last 24 hours.
BTC has the biggest number of liquidated short positions, around $23 million, followed by Solana, with another $4 million in short positions being liquidated.
The recent gains come despite several bearish conditions in the market, which have left the community doubtful that more gains could be on the way.
Crypto Prices Hold Steady Despite German Government Selling Spree
The recent gains across the cryptocurrency market come despite the German government continuing to dump BTC.
The selling activity was the main reason why prices plunged last week. However, the market resists the effects of this selling activity.
According to trader @DaanCrypto, the German government’s recent selling pressure around BTC could present a buying opportunity for large firms who want to buy low.
According to Arkham Intelligence, the German government has sold more than 10,000 BTC in the last 24 hours alone, and with the price holding steady, holders appear to remain undeterred.
The wallet address owned by the German government holds less than $1 billion worth of BTC, a notable decline from the over $3 billion last month when the selling spree started.
The wallet has around $794M in coins.
The recovery in the market has not just been felt in prices but also inflows to Bitcoin products.
This week’s flows into spot Bitcoin-exchange traded funds (ETFs) have surpassed $500 million, according to data from SosoValue.
