The cryptocurrency market has seen a significant recovery following a recent downturn, with Bitcoin (BTC) now trading above $56K, a 4% increase in the past 24 hours. This recovery comes after BTC crashed to a 5-month low of $53,550, with the market correction attributed to fears of increased selling pressure due to repayments by Mt. Gox to its creditors and the German Government's continued liquidation of seized BTC.

Alongside Bitcoin, a majority of altcoins are also showing signs of recovery. Notably, AVAX, TON, DOGE, and PEPE have all soared by 12%, while the popular meme coin Shiba Inu (SHIB) has seen a remarkable 15% recovery. Large-cap cryptocurrencies such as Ethereum, Binance Coin, Solana, Bitcoin Cash, and MATIC are also charting gains between 4.5% and 10%.

Despite the recent market volatility, experts remain optimistic, viewing the correction as a normal occurrence in bull markets and noting that 30% declines have frequently occurred in the past. As the market takes a breather, it will be interesting to see if the recovery will continue throughout the week or if another wave of selling is imminent.