Markets
Why is the cryptocurrency market bullish today? Has the bull run begun?
The total cryptocurrency market cap surged more than 4% over the past 24 hours to hover around $2.41 trillion on Monday during the mid-London session. After being stuck in a bearish outlook for the past four weeks, Bitcoin (BTC) price led the altcoin industry in a general bullish consensus.
According to the latest cryptocurrency market data, the price of Bitcoin hit a daily high of around $63,000 before retreating to $62,700. The price of Ethereum (ETH) rose more than 4% to settle at around $3,347.
Top Reasons Why Cryptocurrencies Skyrocketed
Increased demand from whale traders
Demand for digital assets has increased significantly in recent days, as demonstrated by the more than $1 billion in inflows into spot Bitcoin ETFs last week.
Meanwhile, on-chain data shows that several altcoins have seen a flurry of whale purchases in recent days.
For example, Chainlink whales have snapped up over 10 million LINKs worth over $120 million in the past two weeks.
Decreased fear of capitulation
Clear regulatory frameworks across jurisdictions have given the crypto industry a significant boost. The US SEC has already lost several cases against crypto projects and dropped investigations into others.
Meanwhile, the EU continues to implement the Markets in Crypto-Assets (MiCA), thus attracting more institutional investors to the web3 space.
As a result, Bitcoin’s fear and greed index has risen to around 52% neutral from 25% extreme fear last week.
Failed assassination of Donald Trump
Following the failed assassination of US presidential candidate Donald Trump over the weekend, his re-election chances have increased significantly. The pro-crypto presidential candidate is still expected to attend the Bitcoin 2024 conference in Nashville.
Trump has already received massive support from cryptocurrency investors led by Tron’s Justin Sun, Dogecoin godfather Elon Musk and the Gemini brothers, among others.
What next?
The cryptocurrency market is in a macro bull cycle that was marked by Bitcoin’s fourth halving earlier this year. Until the price of Bitcoin consistently closes above $73,000, the cryptocurrency market will continue to consolidate.
However, the inevitable final approval of Ethereum spot ETFs amid expected US interest rate cuts later this year will trigger the next phase of the cryptocurrency rally.