Bitcoin and Ether moved up again after a sharp fall in the market. This happened after the United States government avoided a shutdown and after the Nvidia CEO gave positive comments. These two events helped calm investors and brought back some confidence in risky assets like crypto.
Earlier Bitcoin fell very hard and reached its lowest price in more than one year. It dropped to around seventy two thousand nine hundred before turning back up. After that it moved back above seventy six thousand but could not hold the move for long. Ether also jumped strongly from its low and went back above two thousand three hundred before slowing down again.
The market was very wild during this time. Many traders lost their positions as prices moved too fast. A lot of people had placed trades expecting prices to go up and when the market dropped those trades were closed automatically. This caused big losses for traders in a short time.
The main reason for the rebound was news from the United States. Lawmakers reached an agreement that stopped a government shutdown. This reduced fear in the market and helped stocks and crypto move up again.
Another big reason was a public talk by the Nvidia CEO. He said there was no problem between Nvidia and OpenAI. He also confirmed that Nvidia will continue to support OpenAI. This helped calm worries in the tech sector. Since many crypto investors also follow the tech market this news gave more confidence.
Even though prices went up again some warning signs are still there. Bitcoin moved below an important price level that was seen in April last year. When this level breaks it can sometimes mean more downside in the future.
Still some market experts believe a short term bounce can happen. One analyst said when Bitcoin drops below old lows it often moves up again for a short time. This gives traders some hope before the next big move.
He also said that when people feel very negative it can be a sign that a short relief rally is close. Many traders are now very scared and expecting more falls. This kind of feeling has in the past been followed by a short move up.
The analyst also warned that if Bitcoin does not bounce soon the rest of the year could be very hard. In past years when Bitcoin failed to recover after big drops the market stayed weak for a long time.
For now the market is in a wait and see mode. Some traders are hoping the bounce will continue. Others are staying careful because the trend is still not clear.
Bitcoin and Ether remain very important for the whole crypto market. When they move the rest of the market usually follows. The next few days will be important to see if buyers have enough strength to push prices higher or if another drop is coming.
In short the market got some relief from good news but the danger is not fully gone. Traders should stay calm and watch how prices behave. The crypto market is still full of risk but also full of chances for those who stay patient.