A Slow Recovery in Cryptocurrency Markets

Cryptocurrencies experienced a slight rebound despite the ongoing presence of bearish projections that influenced market sentiment. The overall crypto market capitalization saw an uptick as markets processed the latest updates from Bitcoin investor Strategy Inc and insights from AI safety and research firm Anthropic, alongside rising demand for XRP ETF products. Bitcoin fluctuated between $88,537 and $83,862 over the last 24 hours, while Ethereum ranged from $2,863.89 to $2,720.44. Virginia-based Strategy Inc, led by Bitcoin advocate Michael Saylor, remained at the forefront of news by acquiring 130 Bitcoins valued at $12 million on Monday, increasing its total holdings to 650 thousand—representing 3.095 percent of total Bitcoin supply. The company’s shares hit a 52-week low of $155.61 on Monday before closing at $171.42, a 3.3 percent drop, though shares were up 4.6 percent in Tuesday trading. Amid concerns that lower Bitcoin prices could force it to sell some Bitcoin to cover dividend and interest payments, the company announced a $1.44 billion U.S. dollar reserve funded through Class A stock sales to cover dividends on preferred shares and interest on existing debts.

The decrease in outflows from U.S.-based Bitcoin Spot ETFs also bolstered sentiment, with net inflows of $9 million recorded on Monday. Markets also reacted to reports, which warned of automated exploitation of vulnerabilities after announcing that AI Agents can create exploits and discover new weaknesses; an assessment of Claude Sonnet 4.5 and GPT-5 identified two new zero-days and generated corresponding exploits. The cryptocurrency market capitalization stands at $2.98 trillion, reflecting an overnight increase of nearly 2 percent, even as 24-hour trading volume declined 2.2 percent to $140 billion. Among the top 100 cryptocurrencies, 71 logged gains exceeding 1 percent, while 8 recorded losses over 1 percent. In the top 10 non-stablecoin cryptocurrencies, BNB, TRON, Hyperliquid, and Bitcoin Cash show year-to-date gains, while Bitcoin, Ethereum, XRP, Solana, Dogecoin, and Cardano remain in year-to-date losses. Bitcoin surged 2.8 percent in the past 24 hours to $88,473.99—still 30 percent below its $126,198.07 all-time high from October 7—and is down 5.3 percent year-to-date, while gaining 1.8 percent over the past week.

Ethereum rose 1.5 percent overnight to $2,859.52, trading nearly 42 percent below its all-time high and reflecting year-to-date losses of 14.2 percent. Bitcoin ranks 9th and Ethereum 45th in global asset rankings by market capitalization, according to companiesmarketcap.com. XRP, ranked 4th, increased 1.6 percent to $2.05. BNB, ranked 5th, rallied 4.1 percent to $851.10. Solana, ranked 7th, increased 3.9 percent to $131.21. TRON, ranked 8th, rose 0.82 percent to $0.2798. Dogecoin, ranked 9th, gained 2.4 percent to $0.1385. Cardano, ranked 10th, surged 5.5 percent to $0.3999.

In a remarkable overnight performance, the 64th ranked Pump.fun led the top 100 cryptocurrencies with a 14.9 percent surge, while 75th ranked MYX Finance jumped 13.6 percent. AB, ranked 99th, struggled with a 10.3 percent decline, recovering from overnight losses, while Canton, ranked 34th, recorded drops exceeding 9 percent. With mixed movements across top assets, shifting ETF flows, AI-related cybersecurity concerns, and new institutional reserve decisions, the broader crypto market reflects a cautiously improving yet still volatile environment.