Global markets staged a powerful rebound as investors aggressively bought the dip across commodities, equities, and cryptocurrencies, reversing much of the recent panic-driven selloff. Gold and silver led the recovery in precious metals, while U.S. stock indices and digital assets surged amid signs of easing geopolitical tensions and renewed liquidity inflows.
Gold rose roughly 5.8% from its intraday low, restoring an estimated $1.87 trillion to its market capitalization. Silver rebounded even more sharply, jumping about 18% from its low and adding approximately $672 billion in market value. The recovery followed reports of renewed diplomatic talks between the United States and Iran, easing fears of broader geopolitical escalation.
What is driving the sudden market recovery
The rally extended well beyond metals. U.S. equities surged, with the Nasdaq 100 and the S&P 500 both gaining more than 1% on the day and fully recovering from the previous session’s sharp decline. In just two hours, more than $1 trillion was added back to U.S. stock market capitalization, and by the end of the day total gains reached roughly $1.4 trillion.
At the same time, China’s central bank moved to tighten oversight of the crypto sector, banning the issuance of yuan-denominated stablecoins without approval including offshore activity blocking real-world asset tokenization, and requiring internet companies to fully exit crypto services. Despite the regulatory headlines, crypto markets rallied strongly, signaling that macro sentiment outweighed policy concerns.
Bitcoin surged more than 14% from yesterday’s low and climbed above $71,000. Over the past 24 hours, bitcoin jumped more than $11,000, marking the largest single-day price increase in its history. The move triggered massive short covering, with more than $487 million in short positions liquidated over 24 hours, including $185 million in just 12 hours.
Since yesterday’s low, total crypto market capitalization has expanded by roughly $270 billion, followed by an additional $310 billion increase as the rally accelerated.
How investors are positioning after the rebound
The recovery has been fueled by aggressive dip-buying across risk assets. Market participants point to forced liquidations exhausting selling pressure, allowing prices to snap back once fear subsided. Short sellers bore the brunt of the reversal, accelerating gains as positions were closed at rising prices.
Crypto-linked equities also surged. Shares of MicroStrategy jumped 31% in just 16 hours, adding nearly $9.96 billion in market capitalization from recent lows. Despite the sharp rebound, the company still carries an unrealized loss of approximately $3.93 billion on its bitcoin holdings, underscoring the continued volatility tied to crypto exposure.
The synchronized rebound across metals, equities, and crypto highlights a broader shift back into risk-on positioning. Analysts note that such rapid recoveries typically reflect a combination of easing macro fears, heavy short positioning, and renewed confidence that recent selloffs overshot fundamentals.
As previously covered, periods of extreme volatility often end with sharp countertrend rallies once forced selling runs its course. While uncertainty remains elevated, the speed and scale of the rebound suggest that investors are once again willing to deploy capital aggressively.
Looking ahead, markets will closely watch geopolitical developments, central bank actions, and liquidity conditions to assess whether the rally can be sustained. For now, the message is clear: after one of the most violent drawdowns in recent history, investors rushed back in and trillions of dollars followed.