The crypto market fended off further losses on Thursday, with large-cap coins Bitcoin and Ethereum regaining price milestones seen during the beginning of the week.
Over 24 hours, Bitcoin has risen 4.5% to just below $67,000, while Ethereum has clinched a 2.1% gain to $3,250, data from CoinGecko shows.
Crypto dived late Wednesday evening amid a flurry of liquidations following significant losses felt across the broader market, with tech stock dragging major indices lower.
Though the market has shown signs of resiliency, oscillating sentiment between risk-on and risk-off among investors weighs heavily.
Even still, several tailwinds for the crypto market linger, including changing political winds in Washington, D.C., and investor interest in newly listed Ethereum exchange-traded funds.
Commenting on Bitcoin’s drop to $53,000 on July 5, onchain analytics platform Glassnode labeled the asset’s revival as “very strong,” which has pulled short-term holders back into unrealized profit.
“This has provided much-needed financial relief and is supported by a period of net positive capital inflows over recent weeks,” Glassnode said in a note on Wednesday.
Glassnode defines short-term holders as any individual who has obtained and held onto cryptocurrencies for less than six months.
Thursday’s market recovery comes as inflows to U.S. spot Ethereum ETFs saw daily outflows totaling $285 million over the last two days, data from SoSo Value shows.
Ethereum’s ETFs went live for trading in the U.S. on Monday, with the initial interest pushing inflows to just under $107 million, Decrypt previously reported.
Bitcoin’s inflows have fared a little better, up about $76 million over the same two-day period.
On Tuesday, investment management firm VanEck provided projections for Bitcoin, stating the asset could hit a $2.9 million price tag by 2050, driven largely by its “adoption as a global medium of exchange and a reserve asset.”
“This projection is rooted in the anticipated erosion of trust in current reserve assets,” VanEck’s digital asset research team said in a note to investors. “It is conceivable that by 2050, Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade.”
That would result in central banks holding 2.5% of their assets in Bitcoin, driving its total market cap to an eye-watering $61 trillion, VanEck said.