The global cryptocurrency market has rebounded powerfully, adding an astonishing $250 billion to its total valuation in the past day. This surge has lifted the overall market cap back above the $4 trillion threshold, marking one of the most significant daily gains in recent memory.
Key Drivers Behind the Rally
Explosive Growth Across Altcoins Altcoins led the charge, contributing nearly $240 billion to the total increase in market capitalization, dwarfing Bitcoin’s role in the rally.
Short Squeeze Speeds Momentum The surge triggered a wave of short-position liquidations, with analytics firm Coinglass reporting around $200 million worth of short contracts forced to close—further amplifying upward price pressure.
Context and Outlook
This rally comes amid a broader reopening of risk appetite across financial markets, echoing fresh investor confidence. While Bitcoin also edged higher, with prices strengthening (for example, hitting around $116,000), the altcoin sector clearly drove the gains this time.
