Crypto market aims to catch up to $1 trillion as Bitcoin shows renewed strength
The crypto market has bounced back 1 trillion dollars territory, as its top performers — Bitcoin and Ethereum — brought in some impressive numbers on Thursday.
Bitcoin finally managed to surpass and stably hold the $20K marker while Ethereum shows its best performance yet after crashing after The Merge.
At press time, according to tracking from Coingecko, BTC is trading at $20,501 while the king of all altcoins is changing hands at $1,538. Both assets have seen an impressive increase over the past seven days, 7.1% and 19.8% respectively.
Bitcoin and Ethereum also managed to increase their market capitalization significantly, which helped the digital currency sector to pump its all in all value at 1.034 trillion dollars.
US Treasury Behind The Bullish Run?
With this sudden positive trend, participating entities such as investors, traders and digital currency holders are wondering what is driving this increase.
BitMEX co-founder Arthur Hayes weighed in, saying the US Treasury could be the one behind this momentum that made Bitcoin and altcoins climb out of their bearish pit.
U.S. Treasury. Image Michael Moyo International, LLC
Hayes explained that the department is considering the idea of issuing short-term Treasury bills to deal with impending increases. He added that macroeconomic conditions are improving in ways that favor the crypto market.
Over the past five days, the US dollar index has fallen by 1.77%. Meanwhile, during the same time period, the prices of crypto assets rose, culminating in a significantly strong rally of the market as a whole.
Crypto Bullish Rally Not Unstoppable
One sure thing that remains constant with the crypto space is that bullish swings can be easily stopped with the right triggers.
Therefore, it is important for traders, investors and holders to always be on the lookout for potential “rally stoppers” that can prevent the upward trend that is currently happening – at least in most parts – of the market now.
For example, the US central bank is considering implementing an additional 75 bps interest rate go as a measure to combat high inflation figures.
If that happens, crypto assets will again take a hit and may end up experiencing severe price dumps again.
Also, a number of technology companies will soon announce their third quarter earnings. Experts believe that a poor performance by tech giants like Apple and Microsoft is likely to affect the industry in a negative way.
As prices for trading cryptocurrencies decline, so does their market value, and the crypto market as a whole will once again suffer.
But for now, the crypto community has plenty of reasons to celebrate as the digital currency market finally regained its $1 trillion market cap.
Crypto total market cap at $956 billion on the daily chart | Featured image from ChessBase, Chart: TradingView.com
