After a sharp drop of 10.92% on 'Black Monday', the cryptocurrency market demonstrates signs of recovery. This article discusses the reasons for this rise and what may happen next.
Reasons for Market Increase
One of the primary reasons for the market recovery was the rumor about a 90-day tariff pause discussed in connection with President Trump's policies. This news rapidly generated excitement, although the White House later denied these claims.
Declining Liquidations in the Market
According to Coinglass, the number of liquidations among traders has significantly decreased. On 'Black Monday', over 460,000 traders were liquidated, totaling $1.42 billion. Today, that number has dropped to 117,814 traders with total liquidations at $437.66 million. This indicates an increase in trader confidence.
Negative Signs: Fear and Greed Index
Despite the recovery, the Fear and Greed Index shows 'Extreme Fear' at 24, slightly up from 23 yesterday. This indicates that market participants are still feeling anxious, and the market could drop again if negative news emerges.
The cryptocurrency market shows signs of recovery due to declining liquidations and rising Bitcoin prices. However, current negative indicators require caution from investors, as future data may influence the market.
