[Analysis] Crypto market cap jumps $140bn in a day, rebounds on hopes of easing geopolitical tensions

The cryptocurrency market’s total capitalization staged a sharp rebound, rising by about $140bn in a single day.

According to crypto-focused outlet Finbold on the 10th, the total crypto market cap was estimated at about $2.41tn. That marks an increase of roughly $140bn from the past 24 hours’ low of about $2.27tn.

The rebound was led by gains in major large-cap tokens. Bitcoin rose about 4.74% to $70,862, keeping its market cap around $1.4tn. Ethereum climbed about 3.40% to $2,063, bringing its market cap close to about $248.9bn.

Elsewhere, BNB advanced to about $647.76 and XRP to about $1.41, with market caps of roughly $88.3bn and $86.1bn, respectively.

Markets say improved risk sentiment was driven by expectations that tensions in the Middle East may ease. Analysts point to comments by President Donald Trump suggesting that Iran-related conflict could end soon, helping to temper anxiety around global risk assets.

Easing geopolitical stress also pushed oil prices lower and left the dollar slightly softer—factors seen as supportive for risk assets such as crypto.

Derivatives market positioning further amplified the upswing. With investors having built substantial short positions amid geopolitical risks and macro uncertainty, the initial price move triggered liquidations, resulting in a short squeeze, according to analysts.

Expectations of changes in the US regulatory environment also appear to have buoyed sentiment. As discussion advances around the Clarity Act and stablecoin-related legislation, hopes have risen that regulatory uncertainty in the crypto market could ease.

Still, some in the market argue that the rebound looks more like a technical bounce driven by short covering and improved sentiment than fresh inflows. Volatility may persist depending on concerns over slowing global growth, geopolitical variables and the direction of monetary policy.