Bitcoin
Why is the cryptocurrency market bullish today? Has the bull run begun?
The cryptocurrency market has seen a notable rally over the past 24 hours, with the total market capitalization rising by over 4% to approximately $2.41 trillion in mid-London trading on Monday. After a month of bearish trends, Bitcoin (BTC) is now leading a bullish shift in the altcoin sector.
Recent data reveals that Bitcoin’s price reached a daily peak of around $63,000 before stabilizing again at $62,700. Meanwhile, Ethereum (ETH) experienced a robust increase of over 4%, trading near $3,347.
Top Reasons Why Cryptocurrencies Skyrocketed
Increased demand for digital assets
Demand for cryptocurrencies has surged recently, as evidenced by over $1 billion flowing into the spot market Bitcoin ETFs last week. This spike in investment highlights a growing interest in digital assets.
On-chain data indicates a surge in whale activity across several altcoins. Notably, Chainlink whales have accumulated over 10 million LINK tokens, valued at over $120 million, in the past two weeks.
Decreased fear of capitulation
Clearer regulatory frameworks across jurisdictions have provided a significant boost to the cryptocurrency industry. The U.S. SEC has lost several cases against cryptocurrency projects and closed investigations into others, while the European Union continues to advance the Markets in Crypto Assets (MiCA) regulation. These developments are attracting more institutional investors to the Web3 space.
As a result of these positive shifts, Bitcoin’s Fear and Greed Index has risen to 52%, indicating neutral sentiment, up from 25% extreme fear last week.
Failed assassination of Donald Trump
Following the failed assassination attempt on US presidential candidate Donald Trump over the weekend, his re-election chances have increased. Trump, a well-known cryptocurrency advocate, is set to attend the Bitcoin 2024 conference in Nashville.
His campaign has received significant support from prominent figures in the cryptocurrency world, including Tron’s Justin Sun, Dogecoin’s Elon Musk and the Gemini brothers.
The cryptocurrency bull cycle continues
The cryptocurrency market is currently undergoing a macro bull cycle, triggered by Bitcoin’s fourth halving earlier this year. Until Bitcoin consistently trades above $73,000, the market is expected to consolidate.
However, the anticipated approval of Ethereum ETFs in the offing, coupled with potential US interest rate cuts later this year, could catalyze the next phase of the cryptocurrency rally.
Read too: XRP News: Ripple Sells 40% Stake in Tranglo: What’s Behind This Surprising Move?
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