The cryptocurrency market has made a remarkable recovery after the crash on Monday, led by Bitcoin (BTC) and Ethereum (ETH). With increased trading volume over the past 24 hours, Bitcoin has seen an increase of more than 90 percent in its average daily trading volume, reaching nearly $93 billion. As a result, the total value of the cryptocurrency market has increased by more than 4 percent to nearly $2 trillion as of early today.

Major Reasons Why Bitcoin and Altcoins Are Rising Again

Asian stock markets rebounded on Tuesday after their worst single-day performance in decades on Monday, led by the Nikkei 225 and the Asian Dow. A similar rally is expected in European and U.S. stock markets, which suffered significant losses on Monday. As a result, the recovery in Asian stock markets has also brought a boost to the cryptocurrency market.

After heavy liquidations in the last 48 hours, the crypto market has shown fears of further capitulation in the coming weeks. The crypto fear and greed index for Bitcoin and the rest of the crypto market has also started to show more fear signals. However, on-chain data shows that long-term investors are interpreting the recent crash in the crypto market as an opportunity to pick up the bottom. For example, spot Ethereum ETFs in the US recorded net cash inflows of around $49 million on the day the market crashed.

The cryptocurrency market has begun to benefit significantly from the increasing global liquidity outlook led by China, Japan and the US. The US national debt has exceeded $35 trillion for the first time in history. As of tomorrow, the US Fed will begin monthly treasury repurchases of $30 billion, thus injecting liquidity into the market.

Is the Cryptocurrency Market Crash Over?

From a technical perspective, the cryptocurrency market had one of its worst days with yesterday's sell-off. Although August and September are generally considered to be a bearish period for the cryptocurrency market, an event similar to yesterday's event is less likely to occur, indicating an inevitable recovery in the fourth quarter.

The cryptocurrency market has so far managed to recover quickly from the crash, with global liquidity increasing and long-term investors seizing opportunities. This positive trend in the market is expected to continue, and investors hope to see a more stable and strong market in the coming periods.