After a rough weekend that saw Bitcoin and many altcoins dip sharply, the crypto market has made a strong comeback. Monday’s surge caught many by surprise but if you’ve been following closely, the signs were there.
Bitcoin jumped back up to $115,300, recovering from a low of $112,000 seen on Sunday. Several altcoins joined the rally too. Among the biggest gainers were Spark, MemeCore (M), Mantle, and Sei, pushing the total crypto market cap above $3.78 trillion.
So, what’s fueling this sudden upswing?
A Game-Changer for Crypto Sentiment?
A key driver of this rally is the buzz surrounding Bullish’s upcoming IPO. The exchange, backed by venture capitalist Peter Thiel, is preparing to go public with a valuation target of $4.2 billion. It plans to raise $629 million by offering 20.3 million shares to investors.
This move follows the successful public debut of Circle Internet, whose valuation skyrocketed past $60 billion during its IPO. Other big names like Grayscale and Kraken have also announced plans to go public.
Such announcements tend to lift market confidence. After all, these moves signal that institutional interest in crypto is not just alive, it’s thriving.
“These news events often drive sentiment in the crypto market, boosting prices.”
Trump’s Influence
Adding more fuel to the fire, political developments are playing a role too. President Donald Trump is reportedly preparing to nominate a new Federal Reserve Governor following the resignation of Adriana Kugler.
This is Trump’s first real opportunity to begin reshaping the Fed, aligning it with his long-standing call for lower interest rates.
According to Bloomberg, the nominee may even become Fed Chair after Jerome Powell’s term ends in 2026. They’d likely support the same rate-cutting stance favored by Michelle Bowman and Christopher Waller.
And historically, lower interest rates tend to be a good thing for crypto prices.
“Crypto prices tend to perform well when the Federal Reserve is cutting interest rates, as seen in 2024.”
Technical Bounce or Bull Trap?
From a charting perspective, Bitcoin’s rebound could also be tied to a key support level. Over the weekend, BTC fell back to $112,000, a level that previously acted as May’s high and an all-time high before that.
This move suggests a break-and-retest pattern, which often indicates a continuation of an uptrend.
“If this holds, Bitcoin may rebound to the all-time high of $123,192 and beyond, which could boost other altcoins.”
But not everyone is convinced.
“There is a risk that the ongoing crypto market rebound is part of a bull trap or a dead-cat bounce.”
A bull trap happens when the market appears to recover, only to dive again. It’s a temporary bounce that lures in traders before heading lower.
Final Thoughts
We’re looking at the early signs of a long-term bull run or just a short-lived pump, one thing is clear: market optimism is back at least for now.
With major IPOs, political shake-ups, and strong technical indicators in play, all eyes will be on the charts this week. If Bitcoin can hold its ground or better yet, push higher it may confirm this rally has real legs.
But as always in crypto, proceed with caution. Because sometimes, what looks like a rocket ship could just be a flare.
