Bitcoin traded at $63,431 on Monday, extending a weekly gain of more than 8% as the cryptocurrency market staged a broad recovery driven by improving macroeconomic sentiment and renewed institutional interest. Ethereum led the charge with a 14.45% weekly surge, trading near $4,800, while Solana gained 12.83%.
The rally pushed the total cryptocurrency market capitalization above $2.7 trillion, with Bitcoin alone accounting for approximately $1.3 trillion — roughly 48% of the entire market. Daily trading volume across major exchanges exceeded $34 billion for Bitcoin and $16 billion for Ethereum, indicating robust participation from both retail and institutional traders.
The recovery follows a turbulent first half of 2026 for digital assets. Bitcoin had fallen from its January highs near $110,000 to below $60,000 in March, weighed down by geopolitical tensions, hawkish central bank rhetoric, and a broader rotation out of risk assets. The current bounce has brought the price back above a key psychological level, though it remains well below its all-time peak.
Several factors are fueling the rebound. The U.S. Federal Reserve is widely expected to hold interest rates steady at its upcoming meeting, with minutes from the last session suggesting that policymakers see inflation moderating toward the 2% target. Lower rates tend to be supportive of risk assets, including cryptocurrencies, by reducing the appeal of fixed-income alternatives.
Institutional flows have also picked up. Bitcoin spot ETFs, which were approved in January 2024, have seen net inflows of more than $2.3 billion over the past two weeks, according to data from SoSoValue. BlackRock's iShares Bitcoin Trust (IBIT) alone attracted $900 million in the latest week, its strongest performance since April.
"The institutional bid is back," said Matt Hougan, chief investment officer at Bitwise Asset Management. "After a period of caution, we're seeing pensions, endowments, and sovereign wealth funds re-engage with Bitcoin as a portfolio diversifier."
Ethereum's outperformance is being driven in part by excitement around the network's ongoing technical upgrades and the growing adoption of layer-2 scaling solutions. The Pectra upgrade, which went live in May, introduced improvements to validator economics and account abstraction, making the network more accessible to mainstream users.
Despite the positive momentum, risks remain. The global regulatory landscape for cryptocurrencies continues to evolve, with the European Union's MiCA framework now fully in effect and several Asian jurisdictions tightening oversight. Geopolitical instability, including the renewed conflict in the Strait of Hormuz, could also shift investor sentiment quickly.
For now, however, the mood in crypto markets is the most optimistic it has been in months. Whether the rally has legs will depend on macroeconomic data, institutional flows, and whether Bitcoin can hold above the $60,000 level that has served as a critical support zone throughout 2026.
Image source: i.ibb.co