Monday saw a surge in cryptocurrency markets, with Bitcoin reclaiming above $63,000 amidst a resurgence in risk appetite among investors.
Among the standout performers was Ethereum Name Service (ENS), buoyed by anticipation surrounding its forthcoming ENSv2 upgrade. LayerZero, which recently conducted an airdrop, surged to $3.6, marking a 40% increase from its recent low.
Mog Coin, a prominent meme coin of the year, reached an all-time peak of $0.0000021, soaring over 200% from its June low. Bonk also experienced a notable 32% rise from its lowest point last month, earning it recognition as the standout in this week’s charts. Other notable gainers included altcoins like Dogwifhat (WIF), Immutable X (IMX), Fantom (FTM), and Bittensor (TAO).
The recovery of Bitcoin and altcoins occurred amid robust trading volumes, surging by 45% to $53 billion daily, marking its highest since June 28th, as reported by CoinMarketCap.
Despite the rally, there was no singular catalyst explaining the surge. However, it is speculated that the risk-on sentiment among investors was bolstered following the French election results, where Marine Le Pen’s party’s victory was less substantial than expected.
In response, the US dollar index (DXY) slipped by 15 basis points, while global stocks surged. France’s CAC 40 index rose over 2%, and Germany’s DAX index gained 0.70%. In the US, futures linked to the Dow Jones and Nasdaq 100 index also showed gains.
Nevertheless, concerns linger that the price increases seen in LayerZero, Mog Coin, and Bonk may be a “dead cat bounce” — a temporary recovery in a declining asset — especially given Bitcoin’s recent patterns. Bitcoin’s failure to surpass $72,000, forming a double-top pattern last month, and remaining below key moving averages suggest continued bearish sentiment. A bearish pennant pattern further underscores the caution.
Thus, there remains a risk that Bitcoin could drop below $60,000 in the coming week, potentially resuming a bearish trend that could affect altcoins like MOG, BONK, and ZRO, as these tend to follow Bitcoin’s price movements closely.