Crypto Markets Experience a Relief Rally, Pushing XRP and Dogecoin Up 10%.

Cryptocurrency markets have pulled back to levels reminiscent of early November last year, when Donald Trump’s victory sparked a breakout that saw the market surpass a critical resistance point.

Bitcoin (BTC) has rebounded, nearing the $80,000 mark after briefly dipping below $75,000 late Monday, triggering a broader relief rally across major cryptocurrencies.

Dogecoin (DOGE), Binance’s BNB, XRP, and Cardano (ADA) surged by as much as 10%, helping to recover some of the losses from the past 24 hours. The CoinDesk 20, which tracks the top 20 cryptocurrencies by market cap, gained nearly 9%.

In broader terms, the total crypto market cap has reverted to levels observed in early November, when Trump’s election win caused a significant market rally that broke through a key resistance level.

Meanwhile, equity markets saw a brief surge late Monday after speculation surfaced regarding a possible tariff respite, driving the S&P 500 up by over 7%. However, those gains quickly evaporated after the White House dismissed the rumors as “fake news.”

Crypto-related futures saw over $1.2 billion in liquidations on Monday as major cryptocurrencies experienced a sharp 20% dip at one point. This opened the door for a rebound as traders closed out short positions and reversed selling momentum, as noted by CoinDesk.

Traders are closely watching Bitcoin for any signs of strength, with some remaining cautious due to the ongoing uncertainty surrounding trade tariffs.

“We remain hopeful that Bitcoin will attract investors seeking safe havens if it shows resilience relative to traditional assets during a recovery phase in the short term,” said Jupiter Zheng, partner at HashKey Capital, via a Telegram message to CoinDesk. “Despite global market sell-offs, Bitcoin has declined, yet it has shown relative stability.”

Alex Kuptsikevich, chief market analyst at FxPro, highlighted that while the market has become “emotionally oversold,” the current rebound may not signal a full recovery just yet.

“Crypto sentiment has plunged into extreme fear, sitting at a 23 on the scale, which is higher than we see in traditional equities,” he said in an email. “This doesn’t indicate increased investor confidence. Instead, it points to a more organized and potentially dangerous sell-off.”