There are several main factors that can trigger a rebound in crypto asset prices, including:
1. Changes in Market Sentiment
Improving market sentiment often triggers a rebound. For example, positive news about blockchain technology or regulations that support crypto growth can re-attract investor interest, pushing prices up significantly.
2. Institutional Adoption or Positive Policies
When large companies or governments take steps to support crypto, asset prices often rebound. Institutional adoption, such as Tesla's purchase of Bitcoin, can increase market confidence and push prices up.
3. Oversold Pressure
A rebound can also occur when the market is considered too oversold. In this condition, prices that have fallen too far will attract buyers to re-enter, pushing prices to recover from their lowest levels.
4. Global Economic Recovery
Macroeconomic conditions, such as changes in interest rate policies or global economic recovery, can affect a rebound in the crypto market. When the economy improves or there is an easing of monetary policy, many large investors choose crypto as an alternative, which ultimately increases demand and prices.
5. Whale Activity
Whale is a term for investors or entities with a large amount of crypto assets. Massive purchases by whales can trigger a rebound due to increased demand in the market. This activity is often the main trigger for price spikes in a short time.
