In a volatile yet promising resurgence, the cryptocurrency market witnessed a significant upward momentum on Thursday, with Bitcoin (BTC) nearly reclaiming the $60,000 mark for the first time since last weekend’s tumultuous plunge.

Bitcoin surged by 6.4% within the last 24 hours, currently trading around $59,500. Meanwhile, Ether (ETH) broke through the $2,600 barrier, posting an 8.8% gain, effectively ending its downward trajectory against Bitcoin. The broader CoinDesk 20 Index mirrored these gains, with major altcoins such as Solana (SOL), Near (NEAR), Avalanche (AVAX), and Filecoin (FIL) all experiencing near 10% increases.

Ripple’s XRP emerged as the standout performer, skyrocketing by 22% on the back of renewed optimism following a pivotal court ruling. Investors welcomed the news that Ripple was ordered to pay a $125 million fine for securities law violations—a far cry from the $2 billion the Securities and Exchange Commission had initially sought.

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Market analysts attributed this bullish momentum to two key developments that bolstered investor confidence in the cryptocurrency space.

Firstly, a U.S. judge sanctioned a $12.7 billion payout to creditors from FTX and its sister trading entity, Alameda Research. This decision has fueled hopes that a portion of these funds might find their way back into the crypto markets as former users reinvest in digital assets.

Simultaneously, Russian President Vladimir Putin signed a landmark bill legalizing crypto mining within the country. “It appears Russia is keen on matching the U.S. in the crypto race. The fear of missing out on a national level is intensifying,” remarked Ki Young Ju, CEO of CryptoQuant, a leading crypto analytics firm. He added, “This move will likely bolster the hashrate, enhance network stability, and introduce a new layer of diversity to miner dynamics.”

Thursday’s rally has allowed Bitcoin to completely erase its early-week losses, where prices dipped as low as $49,000, transforming a potentially bearish weekly candle into a positive formation. While a hammer candlestick—a bullish technical pattern that often signals a trend reversal—could form if Bitcoin closes the week near its current levels, analysts remain cautious.

Caleb Franzen, founder of Cubic Analytics, noted Bitcoin’s approach to its 200-day moving average cloud, a critical resistance zone that could potentially halt the ongoing rally. “While I’m optimistic about a breakout above this level, I’m also acutely aware that it could serve as a significant resistance point,” Franzen warned. “A bullish sentiment would prevail if we manage to break and close above this threshold.”

However, the path forward may not be smooth. K33 Research analyst David Zimmerman cautioned against expecting a straightforward recovery following Monday’s sharp decline. “V-shaped recoveries are uncommon in the aftermath of capitulation events like Monday’s crash,” Zimmerman observed. “There’s no urgency to jump into new positions. Typically, the prices within these wicks are revisited, so focusing on assets that demonstrate relative strength during this period is advisable..