Markets
Why is the cryptocurrency market up today? Has the bull run begun?
The cryptocurrency market has seen a notable surge over the past 24 hours, with the total market capitalization climbing more than 4% to around $2.41 trillion as of mid-London trading on Monday. After a month of bearish trends, Bitcoin (BTC) is now spearheading a bullish shift in the altcoin sector.
Recent data reveals that the price of Bitcoin reached a daily peak of around $63,000 before falling back to $62,700. Ethereum (ETH) saw a strong increase of more than 4 percent, trading at nearly $3,347.
The main reasons for the surge in cryptocurrencies
Growing demand for digital assets
Demand for cryptocurrencies has increased recently, as evidenced by over $1 billion invested in the spot market. Bitcoin ETF last week. This increase in investments highlights a growing interest in digital assets.
On-chain data indicates intense whale activity in various altcoins. Notably, Chainlink whales have accumulated over 10 million LINK tokens, valued at over $120 million, in the past two weeks.
Fear of surrender is easing
Clearer regulatory frameworks in different jurisdictions have significantly boosted the cryptocurrency sector. The US SEC has lost several cases against crypto projects and ceased investigations into others, while the European Union continues to advance regulation on markets for crypto assets (MiCA). These developments are attracting more institutional investors to the Web3 space.
Due to these positive changes, Bitcoin’s Fear and Greed Index rose to 52%, indicating neutral sentiment, up from last week’s extreme fear of 25%.
The Failed Assassination of Donald Trump
Following the failed assassination attempt on US presidential candidate Donald Trump over the weekend, his re-election chances have reportedly increased. Trump, known for his support of cryptocurrencies, is expected to attend the Bitcoin 2024 conference in Nashville.
His campaign has received significant support from prominent figures in the crypto world, including Tron’s Justin Sun, Dogecoin’s Elon Musk, and the Gemini brothers.
Cryptocurrency bull cycle continues
The cryptocurrency market is currently going through a macro bull cycle, triggered by the fourth Bitcoin halving earlier this year. Until Bitcoin consistently trades above $73,000, the market is likely to consolidate.
However, the anticipated approval of Ethereum spot ETFs, coupled with possible US interest rate cuts later this year, could catalyze the next phase of the cryptocurrency bull run.
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