Hassan Maishera
TL;DR
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The global crypto market capitalization climbed to nearly $2.82 trillion, its highest level in over seven months.
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Bitcoin gained 5.4% to trade around $81,460.
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Zcash jumped 16.5%, while Cardano rose 13% and XRP and Dogecoin added roughly 10%.
The global cryptocurrency market capitalization rose to almost $2.82 trillion on Thursday, reaching its highest level in more than seven months.
The rally accelerated as Bitcoin broke above $81,000 and several major altcoins recorded double-digit gains.
Bitcoin traded around $81,460 at the time of publication, representing a 5.4% daily increase.
Crypto Market Recovers From January Sell-Off
The market’s latest advance represents a substantial recovery from the sharp decline recorded at the beginning of the year.
Total crypto capitalization stood near $3.4 trillion in mid-January before falling to approximately $2.3 trillion during the first week of February.
At $2.82 trillion, the market has recovered about $520 billion from that February low. However, it remains below the levels reached before the January sell-off.
Bitcoin’s move above $81,000 provided the primary catalyst for the latest increase, encouraging traders to add exposure to more volatile altcoins.
Zcash was the strongest-performing asset among the 50 largest cryptocurrencies, gaining approximately 16.5%.
Cardano followed with a 13% increase, while XRP and Dogecoin each climbed roughly 10%.
The broad participation suggests that risk appetite is expanding beyond Bitcoin. Such moves often occur when traders become more confident in the market leader’s breakout and seek higher returns in altcoins.
Renewed activity in memecoins also contributed to the wider market recovery.
Strategy, Circle and Coinbase Shares Jump
The rally extended into U.S.-listed crypto companies. Strategy and USDC issuer Circle each gained approximately 15%, while Coinbase shares advanced around 10%.
Strategy’s STRC preferred stock also moved closer to its intended $100 par value after falling as low as $69 five weeks earlier.
The rebound in crypto equities indicates that investors are increasing exposure not only to digital assets but also to companies whose revenue or balance sheets are closely linked to the market.
Wincent Senior Director Paul Howard attributed Bitcoin’s breakout to approximately $100 million in ETF inflows and increased over-the-counter trading activity.
“Bitcoin breaking the $80k wall, fueled by $100 million of ETF inflows and OTC activity, was enough to banish the bears ahead of U.S. economic data,” Howard said.
He added that the revival of memecoin trading could help establish the conditions for a steady Bitcoin advance toward $100,000 by the end of the year.
That target remains speculative and will depend on continued investor demand, macroeconomic conditions and Bitcoin’s ability to hold above its latest breakout levels.
Fed Decision Leaves Markets Divided
Investors are almost evenly split over the outcome of the Federal Reserve’s September 16 meeting.
Market pricing indicates a 50.4% probability of a 25-basis-point interest-rate increase and a 49.6% chance that policymakers will leave rates unchanged.
Higher interest rates can weigh on crypto by increasing the appeal of yield-bearing assets and tightening financial conditions. A decision to keep rates steady could provide additional support for Bitcoin and other risk assets.
Upcoming economic data will likely influence expectations before the meeting.
Options Traders Hedge Against a Pullback
Bitcoin options data indicates that investors are maintaining bullish exposure while protecting themselves from potential downside.
Tesseract Group Head of Asset Management Adam Haeems identified approximately $1.4 billion in September put options with strike prices between $68,000 and $75,000.
Put options can gain value when the underlying asset declines, allowing investors to hedge long positions against a market correction.
Overall put open interest is approximately half the size of call open interest. Bullish call positions are heavily concentrated between $82,000 and $100,000.
Haeems described the structure as a “hedged long,” suggesting that traders are retaining upside exposure while buying protection against a possible pullback.
Bitcoin’s ability to hold above $80,000 and challenge the options-heavy area beginning at $82,000 could determine whether the broader crypto market extends its seven-month high.
