Total market value rose about one point seven percent to two point six five trillion dollars as investors reacted cautiously to the recent volatility
Bitcoin recovered about five percent from Monday’s lows trading above seventy eight thousand dollars but gains remained limited near resistance levels that have held since early February Most altcoins saw smaller uneven recoveries and remained well below the highs seen earlier this year
Flows and on chain data suggested that traders were taking defensive positions Crypto investment products recorded about one point seven billion dollars in outflows last week with most withdrawals coming from bitcoin funds followed by ether and other major tokens Long term bitcoin holders fell into unrealized losses even as some institutions continued to add exposure
The cautious sentiment in crypto reflected broader market trends Asian stocks pared earlier losses after U S tech shares fell overnight Investors rotated toward more economically sensitive sectors such as financials and industrials
The pullback in U S equities was driven by concerns that rapid advances in artificial intelligence could hurt traditional software as a service business models In commodities oil prices rose after the U S Navy shot down an Iranian drone headed toward an aircraft carrier adding a geopolitical factor Gold rebounded above five thousand dollars an ounce while the yen weakened ahead of Japan’s election this weekend
On chain indicators also suggested that market positioning was becoming more defensive Analysts noted that long term holders slipping into unrealized losses is often seen in extremely bearish phases that can sometimes precede local market bottoms Options markets showed early signs that traders were preparing for possible stabilization
Corporate crypto exposure remained under focus Ether’s drop increased paper losses at major holders approaching seven billion dollars at some firms Meanwhile some institutional investors reduced positions while others continued to buy bitcoin despite the volatility
Overall crypto’s rebound remains fragile Traders are watching broader risk markets closely to see if they can provide enough support to turn the small bounce into a more durable recovery The cautious tone among short term traders suggests that the market may continue to move in narrow ranges until there is clearer direction
In summary crypto prices have steadied after a volatile start to the week Total market capitalization rose slightly but investor sentiment remains cautious Bitcoin led gains while altcoins showed mixed performance Defensive flows and unrealized losses indicate traders are careful and the market is closely watching both crypto and broader financial conditions.
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