Why is the crypto market shaking again? Is the dawn rebound a true sign of recovery?

A trader at the New York Stock Exchange (NYSE) in the US

As tensions in the Middle East escalated again, the global financial market froze, and the virtual asset market also could not avoid geopolitical risks, showing an overall decline. However, a rebound is being observed in the US stock market during late-night hours, with strong tech stock earnings recovering some of the losses.

According to CoinMarketCap, a cryptocurrency market data aggregator, as of 6:29 AM on the 24th, the global virtual asset market capitalization recorded $2.6 trillion, a decrease of 0.86% from the previous day. Bitcoin (BTC), the leading cryptocurrency, is trading at $77,913.35, down 0.87% from 24 hours ago. Ethereum (ETH), the leading altcoin, fell 3.06% to $2,324.70, and Solana (SOL) dropped 1.93% to $85.72, indicating strong overall downward pressure. XRP (Ripple) also remains at $1.43, down 0.52%. The Fear & Greed Index, which reflects overall market sentiment, stands at 59, pointing to a 'neutral' stage.

This 24-hour chart decline is a result of macro risk aversion sentiment sweeping the market due to the failure of further truce negotiations between the US and Iran. Geopolitical fears reached their peak with news that US President Donald Trump ordered a strengthening of the naval blockade in the Strait of Hormuz and additional US Navy aircraft carriers were deployed, followed by reports of Tehran's air defense system being reactivated. As a result, international oil prices surged, and all three major indices of the New York stock market closed lower, leading to a strong correlation and sell-off in the virtual asset market, which is classified as a risky asset.

However, a shift in sentiment is evident based on the 1-hour chart. Major virtual assets are showing a slight rebound, with Bitcoin up 0.20%, Ethereum up 0.24%, and Dogecoin up 0.39% compared to an hour ago, turning red indicators green.

This short-term rebound is attributed to Intel's optimistic earnings forecast, announced after the close of regular trading on the New York Stock Exchange, which revived investor sentiment for tech stocks and risky assets in general. Investor sentiment, which had plummeted due to negative headlines, quickly regained its footing and began to establish a bottom, relying on corporate fundamentals and bargain hunting, as Wall Street experts diagnosed that "the half-life of market shocks caused by recent headline issues is significantly shortening."

Experts predict that the virtual asset market will continue to experience a sideways trend, fluctuating in response to news flow from the Middle East for the time being. While downside volatility could increase if further geopolitical negative events, such as an escalation of conflict, emerge, the prevailing analysis is that the market's speed in absorbing external shocks is accelerating, as seen in this 1-hour chart rebound. Therefore, attention will eventually return to inherent indicators such as macroeconomic fundamentals and the trend of spot fund inflows.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*