XRP, Dogecoin Surge 10% as Crypto Markets Stage Relief Rally

Bitcoin (BTC) rebounded to nearly $80,000, staging a recovery rally after dipping below $75,000 late Monday. This spurred gains across major cryptocurrencies.

Dogecoin (DOGE), BNB (BNB Chain), XRP, and Cardano's ADA all saw increases of up to 10%, mitigating some of the previous 24 hours' losses. The CoinDesk 20 (CD20) index rose by almost 9%.

The overall crypto market capitalization retreated to levels last seen in early November, coinciding with a rally following .

Equity markets experienced a brief surge late Monday, fueled by rumors of a potential tariff agreement that briefly boosted the S&P 500 by over 7%. However, these gains were largely erased after the White House dismissed the speculation as "fake news."

Crypto futures saw over $1.2 billion in liquidations on Monday as major cryptocurrencies experienced declines exceeding 20% at one point. This sharp drop set the stage for a subsequent rebound as traders closed short positions and reversed overextended selling, as reported by CoinDesk.

Traders are closely monitoring Bitcoin's price action for dip-buying opportunities. However, some express caution due to the uncertainty surrounding ongoing trade disputes.

Jupiter Zheng, a partner at HashKey Capital, commented to CoinDesk via Telegram: "We're optimistic that investors seeking safe havens may look to buy the dip on Bitcoin if it demonstrates relative strength against traditional assets during a short-term market recovery." He added, "While global markets are experiencing significant sell-offs, Bitcoin has also declined but remains relatively stable."

Alex Kuptsikevich, FxPro's chief market analyst, described the market as "emotionally oversold," noting that while a rebound was underway, the conditions for a sustained reversal were "not yet in place." He stated in an email: "Crypto market sentiment has reached the extreme fear zone of 23, significantly higher than what we observe in equities. This doesn't necessarily indicate greater investor confidence, but rather suggests a more organized sell-off, making it potentially more dangerous."