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Why is the cryptocurrency market up today? Has the bull run begun?
The cryptocurrency market has seen a significant rally over the past 24 hours, with the total market capitalization rising more than 4 percent to around $2.41 trillion by mid-London trading on Monday. After a month of bearish trends, Bitcoin (BTC) is now leading a bullish turn in the altcoin sector.
Recent data reveals that the price of Bitcoin hit a daily high of around $63,000 before settling at $62,700. Meanwhile, Ethereum (ETH) recorded a strong increase of more than 4 percent, settling at around $3,347.
The main reasons why cryptocurrencies have risen
Growing demand for digital assets
Demand for cryptocurrencies has increased recently, as evidenced by the fact that over $1 billion has flowed into the spot market Bitcoin ETFs last week. This spike in investment highlights a growing interest in digital assets.
On-chain data indicates a flurry of whale activity across various altcoins. In particular, Chainlink whales have accumulated over 10 million LINK tokens, worth over $120 million, in the past two weeks.
Fear of capitulation waning
Clearer regulatory frameworks in several jurisdictions have given a significant boost to the cryptocurrency industry. The US SEC has lost several cases against cryptocurrency projects and ceased investigations into others, while the European Union continues to advance the regulation of Markets in Crypto-Assets (MiCA). These developments are attracting more institutional investors to the Web3 space.
As a result of these positive changes, Bitcoin’s fear and greed index has risen to 52 percent, indicating neutral sentiment, up from last week’s extreme fear of 25 percent.
Failed assassination of Donald Trump
Following the failed assassination attempt on US presidential candidate Donald Trump over the weekend, his chances of re-election have reportedly increased. Trump, a well-known cryptocurrency advocate, is expected to attend the Bitcoin 2024 conference in Nashville.
His campaign has garnered significant support from prominent figures in the cryptocurrency world, including Tron’s Justin Sun, Dogecoin’s Elon Musk, and the Gemini brothers.
Cryptocurrency Bull Cycle Continues
The cryptocurrency market is currently in 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 expected approval of Ethereum spot ETFs, coupled with potential interest rate cuts in the United States later this year, could catalyze the next phase of the cryptocurrency rally.
Read also: XRP News: Ripple Sells 40% of Tranglo Stock: What’s Behind This Surprising Move?
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