As per CoinMarketCap data, the cryptocurrency market is once again a sea of green after yesterday's steep sell-off. Bitcoin rose above the $39,000 mark as most altcoins recorded double-digit gains. This follows a steep sell-off a day earlier that saw nearly $200 billion wiped off the market.
At press time, Bitcoin was trading nearly 11% higher at $39,251, after reaching intraday highs of $39,716. Bitcoin had fallen as low as $34,322 in the prior day. Top cryptocurrencies, including Ethereum, XRP, Cardano, Terra (LUNA), Shiba Inu and Dogecoin saw solid gains as well.
As a wide reversal in U.S. stock markets drove key indices to close higher, Bitcoin held onto its recovery from one-month lows of $34,322. Cryptocurrencies benefited from the upward trend in prices.
Alternative cryptocurrencies led the broader crypto market recovery, having taken a bigger hit during the market sell-off. LUNA, FTM and Tezos were among the notable gainers in the top 50.
Meme coin Shiba Inu has gained over 8% over the last 24 hours, according to data provided by CoinMarketCap. The token is currently trading at $0.000024. Rival joke-coin Doge has also recorded gains over the same period, rising by about 7%.
Analysts believe that Bitcoin's surprising rebound could also be the result of a so-called short squeeze. Several altcoins experienced a ''short squeeze'' after reaching oversold conditions.
On-chain analytics firm Santiment earlier reported that several assets, such as ADA, MATIC, CRO and LINK, look particularly oversold.
The Crypto Fear & Greed Index, measuring market sentiment, has improved from yesterday's ''extreme fear.'' At press time, the index measured just 27/100—characterizing "fear," a slight rebound from yesterday's ''extreme fear.''