The crypto market is experiencing a strong rebound! Bitcoin is approaching $114,500, altcoins are rising broadly, and institutional investors are buying the dips to drive the recovery.

After the big dump at the beginning of August, the crypto assets market has welcomed a strong rebound. Bitcoin's price broke through the $114,000 mark, with a global market capitalization increase of $85 billion in a single day. Ethereum returned to above $3,500, with significant gains for mainstream alts like XRP, ADA, and HBAR. Institutional investors are buying the dip, and favorable information from regulators (the SEC launching Project Crypto) along with macroeconomic factors (increased expectations for Fed rate cuts and geopolitical risk aversion) are jointly driving this round of rebound in the crypto assets market. Signs of recovery in crypto assets are evident, and investor sentiment is turning optimistic.

Crypto Assets market records significant recovery According to TradingView data, the prices of Crypto Assets have surged nearly 3% in the past 24 hours, recovering from previous falls. As of the time of publication, the global market capitalization of Crypto Assets has reached 3.6 trillion USD, astonishingly increasing by 85 billion USD in a single day.

Rebound characteristics emerged on Sunday, trading volume declined The sudden surge in the prices of the Crypto Assets market has the typical characteristics of a "Sunday Rebound", which is accompanied by low trading volume. Currently, the 24-hour trading volume is $131.36 billion, a decrease of 12% compared to the previous day.

Bitcoin leads the rise, followed closely by Ethereum Bitcoin's price has rebounded strongly from an intraday low of $111,943, currently reaching $114,453, with a single-day rise of nearly 3%. Amidst the price increase, Strategy founder Michael Saylor stated that "winter will not come again," suggesting that this round of Bitcoin's upward trend may last longer. The second-largest crypto asset, Ethereum, has risen nearly 3%, successfully breaking the $3,500 threshold.

Alts are rising, with multiple coins performing well Meanwhile, other crypto assets also followed the footsteps of Bitcoin and Ethereum, recording substantial rises:

• XRP rise 4%
• Dogecoin ( DOGE ) rose by 4.18%
• Cardano(ADA) rises by 5.11%
• Hedera( HBAR ) and Stellar ( XML ) have surged over 10% in the past 24 hours.
• Pi Network(PI) also achieved a considerable rise of 4% during the same period.

The rebound is due to the correction after the big dump at the beginning of the month The rebound this Sunday occurred after a widespread big dump in the crypto assets market earlier this month, which had caused the prices of major cryptocurrencies to fall to two-week lows. The dump also triggered a massive outflow of funds from Bitcoin and Ethereum spot ETFs, both recording nearly $1 billion in net outflows.

Three Major Drivers of the Crypto Assets Market Recovery The weekend recovery of the crypto assets market prices is driven by multiple factors:

1. Institutional Investors Buy on Dips: The buying on dips by large institutional investors ("whales") has triggered new demand for Bitcoin and Ethereum. Yesterday, Adam Back pointed out that a whale user on a CEX is using the time-weighted average price (TWAP) strategy, purchasing 300 BTC daily.

2. Regulatory outlook becomes clearer: New regulatory developments have ignited market optimism for a more sustained cryptocurrency bull market. Last weekend, the U.S. Securities and Exchange Commission (SEC) launched the "Project Crypto" initiative, aimed at exploring tokenization in the U.S. market, and announced a series of roundtable meetings with industry participants. Favourable Information from regulations injects confidence into the market.

3. Macroeconomics and Risk Aversion Demand: The trade tensions triggered by Trump's tariff policies have led to a partial capital inflow into the encryption field, with investors viewing Bitcoin as a safe haven against geopolitical instability. In addition, the market's expectation of an 80% probability for the Fed to cut interest rates in September has further amplified the bullish sentiment in the crypto market.

   

   (Source: CME FedWatch)

Conclusion: Under the combined influence of institutional investors buying the dip, favourable regulatory news, and macroeconomic risk aversion and easing expectations, the crypto assets market has shown a strong recovery momentum. The price of Bitcoin has successfully broken through key resistance levels, and mainstream altcoins have generally followed suit, with the total market capitalization of global crypto assets surging by $85 billion in a single day, significantly improving market sentiment. Investors need to closely monitor subsequent institutional movements, the implementation of regulatory policies, and macroeconomic data (especially the Fed's interest rate decision) on the sustainability of the rebound in the crypto assets market, seizing potential crypto assets buying opportunities.