The cryptocurrency market showed signs of a technical recovery on Wednesday with Bitcoin (BTC) successfully reclaiming the psychological $77,000 level. The daily gain provided some relief to investors after the major cryptocurrency suffered a sharp drop to a three-week low of $76,000 due to inflationary pressures and geopolitical tensions that peaked earlier this week.
According to the latest market data, Bitcoin’s market capitalization has now risen back to $1.550 trillion. While the price is still recording net losses when measured on a weekly scale, BTC’s ability to hold above $77,500 indicates the existence of buying the dip activity by institutional investors.
The main factor driving the extreme volatility in the market throughout the week was the mixed sentiment from Washington. The crypto sector had previously surged following the passage of the CLARITY Act by the US Senate Banking Committee, which provided legal clarity between the SEC and the CFTC. However, the gains were quickly erased by concerns about soaring wholesale inflation (PPI) in the United States.
While Bitcoin has begun to stabilize, the large-cap altcoin market is reportedly still in a flat phase. Ethereum (ETH) barely held on to the $2,100 support and Binance Coin (BNB) hovered around $645, while other popular assets such as XRP, Dogecoin (DOGE), and Cardano (ADA) continued to underperform with slight daily declines.
Overall, the global crypto market managed to add $40 billion in value over the past 24 hours, bringing the total value of the digital ecosystem to $2.660 trillion. Investors are now taking a cautious approach towards the end of the week, as Bitcoin’s market dominance of over 58% indicates that capital liquidity is still concentrated in the primary asset over secondary altcoins.
