The cryptocurrency market has defied expectations, with Bitcoin nearing $106,000 and Ether surging past $2,900 in the past 24 hours, driven by bullish sentiment and institutional demand.
The cryptocurrency market has defied expectations, with Bitcoin nearing $106,000 and ‘nearing $106,000’ and Ether surging past $2,900 in the past 24 hours. This resilience contrasts with a broader risk-off sentiment in equities and gold, following Moody’s U.S. credit downgrade.
The cryptocurrency market is a decentralized and global market for digital currencies.
It allows users to buy, sell, and trade cryptocurrencies such as 'Bitcoin' , Ethereum , and others.
The market is highly volatile and influenced by various factors like supply and demand, regulatory changes, and global economic events.
According to a report, the global cryptocurrency market size was estimated at $1.49 billion in 2020 and is expected to reach $8.29 billion by 2025.
Cryptocurrency exchanges like 'Coinbase' and 'Binance' facilitate trading activities.
Consistent Inflows Drive Institutional Demand
Bitcoin‘s ability to rally over the weekend despite a risk-off tone in equities reinforces its positioning as a legitimate store of value. ‘legitimate store of value’ Consistent inflows into spot bitcoin ETFs and institutional demand are cited as catalysts for this strength. Even as derivatives markets saw some leveraged long liquidations, the firm points to these underlying drivers.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
Created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto, bitcoin uses cryptography to secure and verify transactions.
The total supply of bitcoin is capped at 21 million, and new coins are created through a process called mining.
As of 2022, over 18 million bitcoins have been mined, with the remaining 3 million expected to be mined by 2140.
Ether Surges Past $2,900
Ether was among the standout movers, surging past $2,900 in a strong follow-through move from last week’s breakout. The token’s recent strength has been tied to renewed interest in Ethereum staking flows and positive sentiment following the Pectra upgrade. While no new headline catalyst emerged on Monday, the surge suggests that investors remain optimistic about Ether‘s prospects.
Decoupling Between Bitcoin and Traditional Assets
Traders say that the decoupling between bitcoin and traditional assets like gold is worth watching. Unlike in previous months where BTC and gold went up in unison, bitcoin has been rising against a drop in spot gold. This trend is reflected in ETF flows, with gold ETFs seeing a notable drop in flows while BTC ETFs saw a small rise.
Speculative Interest Drives Aave Token Surge
Aave‘s AAVE tokens soared over 25% in the past 24 hours, though the move appeared largely speculative. No protocol-level announcement or governance proposal was immediately tied to the jump. The token is still down over 60% from its 2021 highs.
Market Watch
Solana‘s SOL, XRP, BNB Chain‘s BNB, and dogecoin (DOGE) rose between 2-4%, with the broad-based CoinDesk 20 (CD20) adding just under 2% in the past 24 hours.
