The cryptocurrency market woke up to a vibrant Wednesday, bounding upward with newfound optimism.

A fresh $40 billion poured into the market, leading to a 1.6% climb in market capitalization.

The cryptocurrency market awoke on Wednesday to a scene of vibrant recovery, unfolding with newfound optimism as fresh capital flowed into the battered crypto sphere. A whopping $40 billion was poured back into the market, leading to a 1.6% climb in market capitalization.

While Bitcoin struggled to leap past its $85,000 ceiling, its younger siblings, the altcoins, seized the day with vigor and zest.

Roaring at the forefront was the Pi Network, leaping by 22%. This surge was heralded by an upcoming network migration, drawing an excited crowd of supporters and speculators. As whispers of the network’s potential listing on major crypto platforms grew, so did the anticipation and investment inflow, pushing its value upwards.

Not far behind, Hedera (HBAR) shattered its previous resistance level, closing the day at a 6% gain. Yesterday saw a significant nod from the SEC, acknowledging a Nasdaq filing to list Grayscale’s HBAR ETF, setting off a blaze of investor confidence. This momentum was palpable, as Hedera surged past the $0.20 mark, leaving a trail of optimism in its wake.

Meanwhile, Binance Coin (BNB) saw a modest ascent of 2%, buoyed by an awakened demand for exchange tokens. Traders, eager to capitalize on the burgeoning market conditions, turned to BNB in particular amidst heightened buy orders, hoping to ride the tide of recovery trades.

In the shadow of altcoin exuberance, Bitcoin’s performance offered a paradoxical tale. Climbing from a Monday low of $76,000 to touch $83,500, Bitcoin’s stagnation below the $85,000 threshold highlighted a market still reeling from extensive ETF outflows. Over $371 million withdrew from Bitcoin ETFs the day before, continuing the alarming billion-dollar trend since March began. Observers watch keenly as the dull echo of US inflation figures resonates through markets, awaiting the potential pivot from corporate investors to alter the current narrative.

Yet, even as Bitcoin held the center stage in headlines, vicious undercurrents indicated a robust yearning for higher-risk assets among the trading community. Memecoins, notorious for their volatilities, captured hearts (and wallets), buoying their market capitalization by 7.4% to approach a whopping $50 billion. Dogecoin nudged forward calmly by 1.4%, while Ethereum-based Pepe and Shiba Inu jumped more fiercely by 6.3% and 1.7%, respectively. These cryptos reflect an appetite for daring plays as traders revel in their newest rallying cry.

Signaling the potential dawn of a sustained recovery, the influx of $117 million into stablecoins hints at fresh capital entering the ecosystem. This strategic inflow sets the stage for seasoned traders to make substantial moves and capitalize on emerging opportunities, ultimately aiming for long-term gains.

The vibrant tapestry of the crypto market is further woven by legislative and corporate shifts. A US House bill to repeal a contentious IRS crypto tax rule now awaits the President’s gavel.

Moreover, Cantor Fitzgerald’s alliance with Anchorage Digital and Copper signals a push by institutional investors, specifically targeting Bitcoin financing avenues. Finally, across the globe, Russia’s central bank is tentatively stepping into crypto waters, designing a legal framework that could open up the market to qualified investors.