On Tuesday, the cryptocurrency market witnessed a sharp downturn, with investors suffering a staggering $1.8 billion in losses, the largest single-day realized loss since August. This collapse was primarily triggered by the unwinding of the yen carry trade, which led to a massive $3.2 billion in realized losses, according to data from Glassnode.
The situation was felt throughout the market, but the recovery has since started, with key cryptocurrencies such as Ripple (XRP), SUI, and Litecoin (LTC) showing significant gains.
The Impact of the Yen Carry Trade Unwind
The yen carry trade caused an immediate drop in sentiment, affecting the broader crypto market. The value of digital assets took a hit, with Bitcoin falling below $90k.
However, Andre Dragosch, Head of Research at Bitwise Europe, offered a contrarian perspective. He highlighted that the Crypto Asset Sentiment Index had hit its lowest point since August, which coincided with the market’s adverse reaction to the yen carry trade unwinding. Dragosch pointed out that despite the market’s decline, this is often when the best buying opportunities emerge, especially for Bitcoin.
“The Crypto Asset Sentiment Index just flashed a massive contrarian buy signal for Bitcoin. Widespread bearishness across flows, on-chain data, and derivatives suggests that downside risks are fairly limited. At these prices, the risk-reward outlook appears quite favorable,”
His comments suggested that the market’s fear could be overstated, and the risk-reward ratio now favors investors looking to buy at lower prices.
The Recovery: XRP, SUI, and Litecoin Lead
Fast forward to the present, and the market has made a dramatic recovery in the last few hours. Among the top performers, Ripple (XRP), SUI, and Litecoin (LTC) have all experienced significant gains.
Litecoin (LTC)
Litecoin has been one of the standout performers in the past 24 hours. At the time of writing, Litecoin’s price is sitting at $125.65, marking a remarkable 14.16% increase within just one day. The cryptocurrency’s 24-hour trading volume has surged to over $1.35 billion. With a market cap of approximately $9.5 billion and a circulating supply of 75.5 million LTC coins, Litecoin has reclaimed its position as one of the top 15 cryptocurrencies.
SUI Price Updates
Currently priced at $3.01, SUI has risen by 13.55% in the last 24 hours. With a trading volume exceeding $1.5 billion, it has garnered significant investor interest, pushing its market capitalization to nearly $9.3 billion. SUI’s circulating supply of over 3 billion coins and a maximum supply of 10 billion make it a major player in the altcoin space.
Ripple’s XRP Price
Perhaps the most significant recovery of all is seen in Ripple’s XRP. As of today, XRP is trading at $2.31, marking a 10.06% increase in the last 24 hours. XRP has over $9.1 billion traded in the last 24 hours. With a market capitalization of $133.4 billion, XRP has firmly secured its position as the fourth-largest cryptocurrency by market cap.
XRP’s price movement and trading volume are indicative of its ecosystem especially as Ripple continues to fight legal battles and expand its network of partnerships across the financial sector.
The wide market is currently in green as the market continues to recover. Bitcoin is currently at $89K Targeting to get back at $90k.
