💹 Recovery Sparks Hope! Crypto Finds Support After Bearish Storm
The crypto market recovered on Monday with Bitcoin rising $115,000 and Ethereum up 6%.
Last week, BTC spot and futures volumes fell, signaling traders are cautious.
Dormant coins also moved, lowering Bitcoin's NUPL from 11.5% to 8.5%.
Bitcoin (BTC) reclaimed $115,000 and Ethereum (ETH) rose 6% on Monday, boosting the crypto market. Some experts believe that Bitcoin exchange-traded funds (ETFs) and favorable macroeconomic circumstances might spur buy-the-dip investor enthusiasm.
Crypto recovers little after weekend setback
On Monday, Ethereum rose over 6% as Bitcoin crossed $115,000. The crypto market seemed to be recovering. XRP and Solana (SOL) both gained somewhat, reversing a weekend decline among leading cryptocurrencies.
According to on-chain analytics service Glassnode, BTC's spot volume dropped from $8.4 billion to $7.5 billion last week, indicating poor investor participation. Futures open interest (OI) fell to $44.9 billion from $45.6 billion, although it stayed above $44.4 billion, indicating cautious traders.
Bitcoin's Net Unrealized Profit and Loss Ratio (NUPL) dropped from 11.5% to 8.5%, according to Glassnode. Profits fell as inactive wallets increased activity in the last seven years. These wallets have transferred about 215,000 BTC in 2025, close to the 255,000 BTC they distributed in 2024, according to CryptoQuant. It seems that long-term investors are booking gains amid price rises.
"Historically, such post-rally shakeouts, particularly those that flush out excess leverage, have laid the groundwork for renewed accumulation," QCP analysts said Monday.
The experts suggested a buy-the-dip approach if Bitcoin ETF inflows resume and volatility cools. "Signs of stabilization, such as renewed spot ETF inflows, declining implied vols and a narrowing of skew, would be constructive signals that institutional sentiment is recovering," QCP said.
Bitfinex experts said the market may consolidate until Bitcoin ETFs take up again.
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