Bitcoin has shown its solid resistance amid the inflation and interest rates that have already affected other financial assets, including the US stock market. The crypto market however is facing a bull rally that can be linked to Bitcoin’s (BTC) performance which has already doubled in price this year.
Other currencies, including Ethereum have also spiked in recent weeks. Exchange-traded funds (ETFs) approval has been the driving force for these market movements and among the cryptos that have experienced a gain in price include Cardano and Dogecoin which are leading the list for most gains in the past 24 hours.
Crypto bull rally
According to market data analysis, the crypto space spurt gained by 4.6%, which was recorded as an overall addition to capitalization in cryptocurrencies. This was a 24-hour increase that totaled to $1.44 trillion, and this has been levels not seen since mid-May 2022.
A week ago, Bitcoin (BTC) and other cryptocurrencies, including altcoins and memecoins, experienced huge gains and tested a reversal for their investors. The correction reversed almost all losses from the $300 million liquidation that happened on Tuesday.
Among the top 10 tokens experiencing a price rally include Dogecoin (DOGE) and Cardano (ADA), which are led by market capitalization. Their gains recorded as much as a 12% increase that hasn’t been attributed to any event or catalyst.
However, the futures trading of these major currencies illustrated a lower-than-usual liquidation. This suggested that the rally might have been caused by spot purchasing. Also, the measure of the digital asset market led by the CoinGecko Index rose to 3.8%
Solana (SOL) also rose to high levels, reaching $67, and this extended a week-long rise that has been favored by the view of the blockchain project. Another reason linking its price rally is the affiliations SOL has to the collapsed crypto exchange firm FTX, led by Sam Bankman-Fried’s investments in using digital currency.
Court ruling might push the price in either direction, and investors can ride the up and down wave.
Avalanche’s AVAX also spiked by 24%, and this increase is catalyzed by the announcement made by Ava Labs. The firm said it’s working with JPMorgan, a banking giant. The partnership is to be added to an upcoming portfolio management product that will be offered in Singapore.
In light of the market gains, some traders had their reviews and confirmed that the increase reflected traditional assets. These included stocks but they also confirmed that recent movements in the market prices suggest signs of early decoupling.
Market sentiments on the crypto rally
According to Alex Kuptsikevich, a crypto market analyst, said that, “Once again, the dynamics of crypto and equity markets have diverged. However, it should be noted that this seemingly negative correlation only works in the short term, as both asset classes have been rising steadily since October.”
The analyst also confirmed that bitcoin bulls are still not giving up as its price rallied close to the $38,000 level on Thursday. Additionally, this added to the market prediction that a surge to $46,000 is on the way.
Currently, Bitcoin is raging at a market price of $36,948 at the time of writing with an increase in market cap by 2.40% recording $722.1 billion. Bitcoin’s performance can be linked to the spot ETF approval that has been anticipated by the United States Securities and Exchanges Commission (SEC).
Ethereum (ETH) also remained on the top list as the asset was catalyzed by BlackRock’s intended launch of Ethereum-spot exchange-traded funds from its iShare Ethereum Trust.
This has seen its price rise from consolidation prices of $1,700 to $2,000. Currently, Ethereum is tagged at $2,043, recording a 0.89% increase in its price. Its market capitalization also increased by 2.96% and this topped to $244.05 billion.
