After experiencing a pullback from recent highs, major cryptocurrencies are now enjoying a strong recovery in the market. This comes as dip buying has been renewed, leading to an uptrend in prices. Bitcoin, for example, dipped to $35,000 but has since recovered above $36,500, showing strong support at its 21-day moving average. Ether, on the other hand, is trading above $2,000, up more than 4% from its lows on Tuesday.
Notably, Solana, the best performer among the top 20 cryptocurrencies by market capitalization, has seen a 14% increase in the past 24 hours, reaching above $60 and marking new highs for the year. Similarly, Avalanche has gained around 17.5%, reaching its highest level since last April, above $20.
The positive sentiment in the crypto markets is fueled by expectations that spot Bitcoin ETFs will soon gain approval in the US. Additionally, macro investors are increasingly betting on a US Federal Reserve rate cutting cycle, expected to begin midway through next year. The capital inflows into the broad crypto market have amplified in recent weeks, with net investor inflows into regulated digital asset investment products remaining close to $300 million for a third consecutive week.
