- A crypto rally is happening, with tokens like Humanity, Toncoin, and LUNC leading the charge.
- These tokens are rising as Bitcoin rebounds to $62,000 from below $60k a day earlier.
- There is a risk that the ongoing crypto market rally is part of a dead-cat bounce.
A crypto rally is happening today, with Bitcoin rising to $62,000 from this weekend’s low of $59,800 to $62,000. This rebound has driven huge gains in key altcoins such as Humanity (H), Toncoin (TON), Terra Luna Classic (LUNC), Dash (DASH), and Canton (CC).
Crypto Rally Pushes Market Cap Up to $2.14 Trillion
These tokens have all jumped by over 10% in the last 24 hours. The crypto market capitalization of all tokens rose by 1.80% in the last 24 hours to $2.14 trillion. Also, crypto liquidations retreated by 82% to $251 million.
Top altcoins have rebounded by 16% in the last 24 hours, with Humanity Protocol (H), Toncoin, LUNC, DASH, and Canton rising by over 10% in this period.
These tokens are rising because of several key reasons. For example, Humanity is rising amid the ongoing artificial intelligence (AI) boom and the rising demand for human verification.
The LUNC token is soaring amid rising token unlocks, while Canton is rising after Grayscale applied for a spot in the CC ETF. Dash and Zcash tokens have jumped due to rising demand for privacy tokens.
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A Potential Dead-Cat Bounce
Still, there is a significant risk that the ongoing crypto rally is a dead-cat bounce (DCB). A DCB is a common occurrence during a bear market, when assets stage a temporary rebound as investors buy the dip. In most cases, this rebound is usually short-lived. In this case, in particular, it is happening in a low-volume environment, with the 24-hour volume falling by 56% to $148 billion.
Looking ahead, the crypto market faces some major risks. The first one is the upcoming US consumer inflation report on Wednesday. Economists expect this report to show that the headline CPI rose 4.2% in May, moving further away from the Federal Reserve’s 2.0% target.
If this is correct, it raises the possibility that the Federal Reserve will begin hiking interest rates, given the strong jobs numbers the US published last week. The report showed that the economy created over 172k jobs in May, higher than the median estimate of 85k. Another ADP report showed that the private sector created over 122k jobs.
The other key risk is that the SpaceX IPO will happen this week. This IPO may push investors to dump cryptocurrencies to buy these shares. This is one of the main reasons why spot Bitcoin and Ethereum ETFs have shed assets this year.
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