 ▲ Cryptocurrency |
The total market capitalization of the virtual asset market surged by nearly $140 billion in just a few hours, staging a sharp rebound. The rapid spread of buying pressure across the market was driven by signals of easing geopolitical tensions combined with a short squeeze.
According to cryptocurrency-focused media outlet Finbold on March 10 (local time), the total market capitalization of the crypto market rebounded from a 24-hour low of $2.27 trillion to $2.41 trillion, marking an increase of approximately $140 billion. Analysts say the market showed a strong short-term recovery following weeks of continued volatility.
Major gains were led by large-cap assets. Bitcoin (BTC) rose 4.74% to $70,862, maintaining a market capitalization of around $1.4 trillion. Ethereum (ETH) climbed 3.40% to $2,063, approaching a market cap of approximately $248.9 billion. Meanwhile, BNB held a market capitalization of $88.3 billion at about $647.76, and XRP (Ripple) rose to $1.41, expanding its market cap to roughly $86.1 billion.
Expectations of easing geopolitical tensions were cited as a key driver behind the rebound. After U.S. President Donald Trump stated that Middle East tensions related to Iran could end soon, global risk sentiment improved rapidly. As oil prices declined and the U.S. dollar weakened, conditions became more favorable for risk assets such as cryptocurrencies.
Structural market factors also accelerated the rally. Amid recent geopolitical instability and macroeconomic uncertainty, investors had built up significant short positions. As prices began to rise, a short squeeze—buying triggered by the liquidation or covering of short positions—was set off. This momentum spread from Bitcoin to major altcoins.
However, the broader macro environment remains uncertain. Global economic outlooks, geopolitical inflationary pressures, and monetary policy decisions could all heighten volatility again. Analysts note that the recent rally appears to be driven more by short covering and relief buying than by substantial new capital inflows, raising the possibility of continued short-term instability in market trends.
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