Cryptocurrency Prices Have Entered a Fresh Bull Market as the Crypto Fear and Greed Index Moves From Monday's Fear Zone to Over 56

Bitcoin has helped this rebound, rallying by over 10% in the last 24 hours. Sui token helped to lead the recovery, rising to $0.8360

Cryptocurrency prices continued to rally on Friday, extending gains from earlier in the week as the crypto fear and greed index moved from Monday’s fear zone to over 56.

Sui token price recovered from this week’s lows to trade at $0.8360, up from Monday’s lows of $0.4615. The token’s sharp price decline was driven by the broader crypto market downturn and the announcement of a class-action lawsuit against Sui Network over its handling of the token launch.

On Friday, the token recovered following the announcement by Grayscale of a Sui fund, which will provide the token with access to more institutional investors.

“We are proud to announce the creation of two new single-asset crypto investment funds, available through private placement: Grayscale Bittensor Trust $TAO and Grayscale Sui Trust $SUI.

Available to eligible accredited investors.

Press release: https://t.co/Xplh81KI9W

1/3 pic.twitter.com/pGcLhcZSdD

Sei token price rose by over 25% in the last 24 hours, reaching a high of $0.3025. The token rallied by almost 50% from its lowest point this week. Celestia’s TIA and Injective’s INJ tokens rose by over 20%. Some of the other top performers included Bittensor (TAO), Brett, and Conflux.

Bitcoin price formed hammer and wedge patterns

Five main factors drove the crypto token rebound. From a technical perspective, most tokens formed a hammer candlestick pattern, which is a bullish sign. A hammer is a small body candle with a long lower shadow that usually forms in a downtrend.

Bitcoin also formed a falling broadening wedge pattern, which typically leads to a bullish breakout.

The rebound also occurred as investors bought the dip amid easing concerns about the unwinding of the Japanese yen carry trade. The Japanese yen currency has shed close to 4% from its highest point this month, while global stock markets rallied.

In the United States, the S&P 500 index rose by over 200 points on Thursday, marking its best day since 2022.

Potential Federal Reserve cuts

A recession in the US would be bullish for risky assets like cryptocurrencies and stocks, as it would prompt the Federal Reserve to step in and begin cutting interest rates. Analysts at Jefferies expect the Fed to deliver a jumbo cut this month, while JPMorgan anticipates 125bps cuts this year.

The tokens also surged following Ripple's victory against the Securities and Exchange Commission on Thursday. The SEC had initially requested $2 billion, but the judge overseeing the case ordered it to pay $125 million.

Finally, the rebound could be a dead cat bounce, which occurs when an asset in a freefall experiences a temporary recovery. These bounces are common in the crypto and stock markets.

In this case, a sustained rally would be confirmed if Bitcoin clears key resistance at $70,000, $72,000, and the year-to-date high of $73,400.

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