Crypto: An encouraging rebound in a bear market

Market overview

The crypto market cap rose 4.8% to $2.45 trillion, then climbed to $2.50 trillion at the end of the day on Wednesday, a four-week high. This is a strong indication of a base forming and a reversal to growth. The capitalisation level is approaching the 50-day moving average, below which it has been steadily trading since the end of January. Consolidation above this line could be an additional signal of a reversal to growth.

On the other hand, this may be just a corrective rebound, as the typical Fibonacci correction range suggests a rebound to £2.53T for the decline since January and to £2.92T as part of a technical recovery from the entire decline since the October peak. Thus, despite the encouraging momentum, this may be nothing more than a rebound in a bear market.

Bitcoin rose to $74K, breaking through the resistance area of the last four weeks with an encouraging surge. We attribute the magnitude of the short squeeze to the confidence of bears who pulled their stops too close to the market price. The recovery lost momentum near the 61.8% level of the January-February decline and just short of the 50-day moving average. Simply put, the bulls still have to convince the community that the bear market is over.

News background

The London Crypto Club expects the US and Israeli military operation against Iran could be a catalyst for Bitcoin's growth. In the event of a protracted war, investors will start buying the first cryptocurrency as a ‘hedge against the collapse of existing economic and political structures.’

Bitcoin is forming a price bottom and will begin to grow slowly this year, according to VanEck. However, 10x Research warns that there are no signs of an exit from the global bearish trend yet, despite inflows into ETFs and the disappearance of the asset's discount on Coinbase.

Mining company Core Scientific will sell all 2,537 BTC it owns by the end of the first quarter. The funds will be used to increase liquidity and finance its AI strategy, according to its annual report.
Mining company Riot Platforms reported record annual revenue for 2025. Its revenue nearly doubled in 12 months due to a strategic shift towards artificial intelligence infrastructure.

Payment company Visa and infrastructure stablecoin platform Bridge will introduce stablecoin cards in more than 100 countries. Launched in 2025, the product is already operational in 18 countries, with transactions available at more than 175 million points of sale.