The cryptocurrency market has begun to show signs of recovery, raising the possibility of a broader rebound if current momentum holds. After recording a modest 2.34% gain, the total crypto market capitalization has climbed back to $2.43 trillion, signaling renewed buying activity across major assets.

Despite the improvement in market conditions, it may still be premature to declare a sustained bullish phase. Several indicators suggest that while the market has posted short-term gains, underlying risks remain that could limit the rally or trigger renewed downside pressure.

Dollar strength coincides with market gains

One factor that may have contributed to the recent market recovery is the strengthening of the U.S. dollar.

The U.S….