Crypto is back in the green, and it’s certainly not a random jump. A mix of improving sentiment and changing narratives around major global players is increasing confidence in risky assets.
While nothing has fundamentally changed overnight, the mood is definitely brighter.
Prices are getting higher
At the time of writing, the major cryptos have moved higher.
Bitcoin has held above recent support levels and is moving higher, so buyers are ready to intervene. Ethereum has also made steady gains. However, Ripple [XRP] was at its peak, rising and outperforming both BTC and ETH in the short term.
Source: TradingView
What’s interesting here is the lack of panic volume or instability, with the numbers looking more like a cautious buying attempt. Traders are clearly more comfortable taking risks than they were a few days ago.
Increased macro support
Recent reports of increased U.S. control over Venezuela’s oil reserves have helped improve the idea of stability.
Although this development is not directly link with crypto markets, it fits a well-known pattern. When macro risks appear to be more limited, investors tend to move back into risky assets.
Energy stability reduces concerns about inflation and uncertainty around global supply, which can support equities, commodities and digital assets.
Crypto’s recent strength comes as investors consider the possibility of a calmer monetary environment.
A new POV
Source:
Charts tracking major holders show that Venezuela’s Bitcoin supply is estimated to be nearly double that of the US government. Traders will be actively monitoring how this part of the offering impacts the larger space.
Source: CoinGlass
In the meantime, liquidation details looked a little different: Bitcoin [BTC] and ether [ETH] Over the past 12 to 24 hours, heavy leverage has been wiped out, especially on the long side.
The liquidations eliminated excess debt and reset positions. Buyers are still active, but are becoming more cautious.
Final thoughts
- Crypto prices rise as risk appetite returns.
- The market looks cautiously constructive.