Altcoins gain alongside ether as bitcoin recovers $76,000, but upside looks fragile

Crypto markets found some footing on Wednesday after a volatile opening to the week, tracking a modest improvement in global risk sentiment even as investors remained wary of near-term direction.

Total market capitalization climbed roughly 1.7% over the past 24 hours to about $2.65 trillion, according to CoinMarketCap. The stabilization followed sharp swings earlier in the week, when thin liquidity and a wave of liquidations dragged prices lower before bargain hunters emerged.

Bitcoin traded above $78,000 during Asian and early European sessions, about 5% above Monday’s lows. The rebound, however, stalled near resistance levels that have capped advances since early February, keeping conviction muted among traders.

The uneven price action has reinforced a defensive mindset, with the market struggling to extend recoveries beyond narrow ranges.

Altcoins showed mixed results. BNB outperformed after renewed backing from Binance founder Changpeng Zhao, while dogecoin edged higher following fresh commentary from Elon Musk. Most other major tokens posted modest gains but remained well below their early-year highs.

The cautious tone in digital assets echoed broader markets. Asian equities recovered from earlier losses after U.S. tech shares slid overnight, as investors rotated toward economically sensitive sectors such as financials and industrials. The pullback in U.S. stocks was fueled by concerns that rapid advances in artificial intelligence could disrupt traditional software-as-a-service business models.

Commodities added to the risk backdrop. Oil prices moved higher after the U.S. Navy downed an Iranian drone headed toward an aircraft carrier in the Arabian Sea, injecting fresh geopolitical risk. Gold rebounded above $5,000 an ounce on dip buying, while the yen weakened as traders positioned ahead of Japan’s upcoming election.

Flows data continued to highlight caution in crypto. CoinShares reported $1.7 billion in outflows from global crypto investment products last week, marking the second straight week of heavy redemptions. Bitcoin products accounted for the bulk of withdrawals, followed by ether and other major tokens.

On-chain indicators point to increasingly defensive positioning. Long-term bitcoin holders have slipped into unrealized losses, a condition CryptoQuant describes as characteristic of “extremely bearish” phases that can precede local market bottoms. Options markets also show early signs of traders positioning for stabilization.

Corporate exposure remains under scrutiny. Ether’s recent slide has pushed unrealized losses at major holders higher, with BitMine’s paper losses nearing $7 billion, while some institutions have begun trimming positions. Others, including Strategy, have continued to accumulate bitcoin despite ongoing volatility.

For now, the rebound remains tentative, with market participants watching whether broader risk assets can provide enough support to turn a shaky recovery into something more durable

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