Crypto bulls went to work as U.S. financial markets remained closed for Memorial Day.
After closing for a record ninth week in the red on Sunday, Bitcoin rallied sharply on Monday, gaining 8% to $32,000. Ether is up 10% and trading at around $2,000 in late evening trading in New York.
Overall crypto market capitalization has recovered 10% to $1.37T after hitting a low of $1.24T on Friday, according to data from CoinGecko.
- WAVES was the best performer in the top 100 cryptocurrencies by market cap, up 109% to $9.65. Dubbed ‘Russia’s Ethereum’, the blockchain’s USDN stablecoin has faced its own challenges after being denounced as a ‘Ponzi’ last month.
- Play-to-earn game Axie Infinity’s AXS token is up 42% to $27.
- In the DeFi sector, AAVE, RUNE and SNX have posted double-digit gains.
Markets had their best day since March after two months of heavy selling. The reversal of accommodative monetary policy from a U.S Fed looking to rein in inflation, coupled with the war in Ukraine and rising commodity prices, have taken a heavy toll on risk assets worldwide. The S&P 500 had its worst April in 50 years and tech stocks, in particular, have been battered.
So, while a bounce was certainly due, given the markets’ record losing streak and extreme bearish sentiment, traders may want to remain cautious.