Leading cryptocurrencies rallied sharply on Sunday as investors awaited new all-time highs for Bitcoin.

Bitcoin tapped $107000, the highest in nearly four months, in a sharp evening rally that saw trading volumes increase by almost 50%.

Leading cryptocurrencies experienced a sharp rally on Sunday, setting the stage for new all-time highs for Bitcoin.

What Happened: Bitcoin tapped $107,000, marking its highest in nearly four months, in a brisk evening rally that saw trading volumes increase nearly 50%. The apex cryptocurrency had already gained 11% for the month.

On the other hand, Ethereum sold off, plunging to an intraday low of $2,344.67 before recovering to the mid-$2,400s by late evening.

Over $575 million was liquidated from the cryptocurrency market in the last 24 hours, with bullish leveraged bets amounting to $350 million.

However, around $465 million in Bitcoin shorts were at risk of liquidation if the apex cryptocurrency rallied to $108,000.

Bitcoin's Open Interest surged by 5.31% in the last 24 hours, reaching levels last seen in December 2024. Meanwhile, bearish bets against Bitcoin spiked, with over 60% of Binance traders who had open BTC positions shorting the cryptocurrency.

The "Greed" barometer rose to 74, according to the Crypto Fear and Greed Index, indicating a potential increase in buying pressure in the coming days.

Top Gainers (24 Hour)

The global cryptocurrency market cap now stands at $3.35 trillion, showing a 2.36% rise in the last 24 hours.

Stock futures dipped on Sunday night. The Dow Jones Industrial Average Futures decreased by 287 points, or 0.67%, trading at 8:37 p.m. ET. Futures tied to the S&P 500 slid 0.82%, while Nasdaq 100 Futures lost 1.06%.

The sell-offs follow Moody's downgrade of the U.S. long-term credit rating, sparking concerns about government debt and inflation. Treasury Secretary Scott Bessent has since dismissed these concerns, calling Moody's a "lagging indicator."

The S&P 500 extended its gains. The broad-based index rose 0.10% to close at 5,892.58, while the tech-focused Nasdaq Composite gained 0.72% to end at 19,146.81. The Dow Jones Industrial Average fell for the second straight day, losing 89.37 points, or 0.21%, to end at 42,051.06.

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Analyst Notes: Cryptocurrency market commentator Michaël van de Poppe highlighted the possibility of altcoins outperforming Bitcoin in the next few days.

"M2 Supply goes up and Bitcoin is primed for a new ATH. Altcoins are outperforming Bitcoin on every move upwards. I think we're in for a great 6-8 week period," stated Van De Poppe.

It's worth noting that Bitcoin touched an all-time high of $109,114.88 on Jan. 20, 2025. Currently, it's trading 3.72% below those levels.

Cryptocurrency analyst and trader Ali Martinez discussed Ethereum's outlook, mentioning $3,000 and $4,000 as the next upside targets if the cryptocurrency manages to sustain itself above the $2,200 level.

Photo Courtesy: Yalcin Sonat On Shutterstock.com

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