Crypto market rally today: Here’s why Bitcoin and top altcoins are going up

A crypto market rally is underway today despite the ongoing retreat in global equities, with Japan’s Nikkei 225, German’s DAX, Hong Kong’s Hang Seng, China’s Shanghai Composite, and Australia’s ASX 200 falling by over 0.80%. Bitcoin (BTC) jumped to $63,000 from the weekend low of $59,000.

The top gainers in the crypto market were Audiera, Siren, Zcash, Dash, Humanity, Near Protocol, and Worldcoin. Audiera jumped by over 50%, while privacy tokens like Zcash and Dash jumped by 14% and 10%, respectively. Other top tokens like Near, Worldcoin, and Bittensor rose by over 10%.

Strategy hints at Bitcoin buying

The main reason behind the ongoing crypto market rally today is that Michael Saylor hinted that it bought Bitcoin last week. In an X post, he said that it was a good time to go buying, a cryptic statement that hinted at renewed purchases. 

This will be a notable purchase as the company sold 35 coins in the previous week. It also did not buy coins in the previous one. The company will send an update on the number of coins it bought last week later today.

Strategy has made substantial losses in the past two years. It now holds 843,706 coins valued at over $53 billion. Its total cost basis was $63 billion, meaning that it has suffered an unrealized loss of over $10 billion. 

Saylor has hinted that the company will continue buying these coins for a long time. To do that, the company will continue diluting its shareholders as it raises its funds by selling common and preferred shares.

A renewed buying will lead to renewed interest among investors, some of whom were afraid that the company was starting to capitulate. 

AI tokens lead ahead of the SpaceX IPO

The crypto market rally is happening as investors pile into AI tokens ahead of the upcoming SpaceX IPO. Elon Musk’s SpaceX is at the intersection of space technology and AI because of its ownership of xAI. As such, investors have piled into top AI coins like Audiera, Humanity, NEAR Protocol, Worldcoin, and Bittensor.

All these crypto projects have their own AI credentials. For example, Worldcoin and Humanity are in the human verification area of the crypto industry. NEAR Protocol has established itself as the layer-1 network for AI development. It also runs Near AI, which offers AI agents. Bittensor offers a decentralized AI development platform.

Potential dead-cat bounce

The ongoing crypto market rally is also likely a dead-cat bounce, a situation where an asset in a freefall bounces back briefly and then resumes the downtrend.

In this case, the dead-cat bounce is happening because Bitcoin price dropped to a crucial support level at $60,000. This was a notable level because it was the lowest level this year and is also a crucial psychological level.

Therefore, there is a risk that the ongoing rebound will not last. As such, analysts recommend that investors should wait a bit before opening their positions. Besides, there are substantial risks ahead, including the strong US jobs numbers, which boosted hopes of a Fed interest rate hike. 

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