BTC stabilized at 78,000, with 31 altcoins rising more than 5% leading to a rebound

According to Woofun AI, the cryptocurrency market experienced a significant reversal after a brief period of turbulence, and the Bitcoin price once again stabilized at the $78,000 mark. The current price is around $78,100, and has recorded an increase of about 2% within 24 hours.

Meanwhile, the price of Ethereum recovered to around $2,500, an increase of around 3%. This macro-level stabilization has not overshadowed deeper changes in the market structure: according to statistics, out of a sample of 45 non-stablecoins and non-gold cryptocurrencies covered, the 24-hour increase of as many as 31 assets broke through the 5% threshold, and 14 of these assets achieved impressive double-digit growth.

This broad upward trend shows that the current market rebound is not dominated by a single leading asset, but is characterized by small market capitalization cryptocurrencies as the core driving force. In the context of Bitcoin providing a relatively safe base, traders poured large amounts of capital into assets with higher elastic potential, causing the increase in most active tokens to surpass Bitcoin itself, reflecting a sharp rise in market risk appetite.

Notably, when CoinMarketCap updated the data at 10:15 UTC, this distribution pattern was still clearly visible, confirming that the trend of capital diffusion from core assets to marginal assets is accelerating.

Judging from the performance of the asset class, decentralized finance (DeFi) and the first-tier blockchain network (L1) formed the main forces of this rebound, and the multi-track rotation effect was remarkable. Uniswap topped the list with an increase of around 33%, becoming the absolute market leader in this round; Arbitrum and NEAR followed, with gains of 27%. Worldcoin, MemeCore, and DOT (DOT) performed equally well, with gains of over 15%.

In an echelon with an increase of 10% to 20%, assets such as Sky, Hyperliquid, Ondo, Sui, Bitcoin Cash, Ethena, Aave, and Bittensor collectively showed strong capital interest in the infrastructure layer and emerging financial agreements. The moderate rise range of 5% to 10% covered a wide range of assets such as Zcash, Canton, Cardano, Monero, Pump.fun, Internet Computer, Shiba Inu, Ethereum Classic, PEPE, Chainlink, Mantle, Solana, Dogecoin, Avalanche, and Litecoin.

This cross-category upward trend is extremely significant because it effectively rules out the possibility that a single project will be beneficial to drive the market. According to data compiled by Woofun AI, the assets participating in the rise not only include DeFi tokens and first-tier blockchain networks, but also cover a wide range of privacy coins, memes coins, and real-world asset (RWA) related projects.

This diversified lead structure shows that the restoration of market confidence is systemic rather than partial speculation. In particular, the strong performance of tokens closely related to decentralized transactions and on-chain finance, such as Uniswap, Arbitrum, Ondo, and Aave, suggests that investors are re-evaluating the long-term value of decentralized agreements under a compliance framework.

Marginal improvements in the macroeconomic environment and the divergent inflow of institutional capital together form the dual driving force behind this rebound. Previously, another increase in interest rates by the Federal Reserve put tremendous pressure on the market, but with the recent drop in oil prices, the decline in US Treasury yields, and the rebound in traditional stock markets, macro-level austerity expectations have eased somewhat. Lower oil prices have mitigated concerns about inflation, while falling yields have increased the attractiveness of speculative assets over interest-bearing assets. Against this backdrop, sentiment in the cryptocurrency market picked up rapidly.

Although not all price increases can be attributed entirely to macro factors, the overall simultaneous rebound in stocks, bonds, and digital assets clearly points to an increase in traders' risk tolerance. In terms of capital flow, institutional behavior showed obvious differentiation characteristics: Bitcoin spot funds in the US market recorded a net inflow of about US$159 million in the previous trading session, which provided solid support for the stabilization of Bitcoin prices;

However, Ethereum-related funds recorded a net outflow of around $39 million, while Ripple (XRP) related products also recorded a net outflow of around $5 million. This phenomenon of 'Bitcoin sucks up gold and Ethereum loses blood' explains why Bitcoin was the first to rebound, yet Ethereum and dozens of other cryptocurrencies outperformed Bitcoin. The deeper reason is that institutional demand is mainly anchored in Bitcoin as a core asset, and improved market sentiment and favorable fundamentals of specific tokens have driven a larger increase in small-cap cryptocurrencies. Zcash is a notable exception. Its investment products in the US market attracted approximately $47 million in capital inflows, providing additional purchasing incentives for this already strong privacy coin, further confirming the rapid rotation of funds among different race segments.

The potential impact of regulatory policies and key variables in future market sustainability will be the core factors in determining whether this round of rebound can evolve into a long-term bull market. The US Securities and Exchange Commission (SEC) recently enacted special rules for certain platforms that allow the tokenization of US stocks. This move may have boosted market interest in decentralized protocol infrastructure. As stated in the report on SEC-related regulations, the regulation only applies to a few regulated trading platforms, does not directly approve decentralized agreements, and does not create automatic demand for their tokens.

However, it does provide investors with a clear reason to re-examine the relative strength of infrastructure that can support more on-chain financial activities, such as UNI, ARB, ONDO, and AAVE, which is probably the market's reaction to this regulatory signal.

Although price data alone cannot fully determine the extent to which traders agree with this view, increased regulatory clarity has certainly boosted market confidence. The next key point is whether the broad performance of the market is maintained after the initial rebound.

If spot purchases continue, trading volume remains stable, and the price of Bitcoin remains above $78,000, then the market's room for growth will expand further. Bitcoin's stability will provide a psychological safety cushion for traders to hold high-risk assets; conversely, if the price of Bitcoin suddenly falls below this level, small-cap cryptocurrencies that have recently risen 20% or more will be more severely impacted. Looking at it now, lower macroeconomic pressure has helped restore market risk appetite. Bitcoin was the first to rebound, and then favorable news from specific projects drove stronger buying behavior for certain small-cap cryptocurrencies. Due to the wide range of increases, this rebound is of practical significance, but its duration will determine whether this is just a brief correction or the starting point for a new round of bull markets.