Why is the Crypto Market Up Today? Has The Bull Run Begun?

The cryptocurrency market saw a notable upswing in the past 24 hours, with the total market capitalization climbing over 4 percent to approximately $2.41 trillion by Monday’s mid-London session. After a month of bearish trends, Bitcoin (BTC) is now spearheading a bullish shift across the altcoin sector.

Recent data reveals that Bitcoin’s price hit a daily peak of around $63,000 before settling back to $62,700. Meanwhile, Ethereum (ETH) experienced a robust increase of over 4 percent, trading close to $3,347. 

Top Reasons Crypto Surged

Rising Demand for Digital Assets

The demand for cryptocurrencies has surged recently, as evidenced by over $1 billion flowing into spot Bitcoin ETFs last week. This spike in investment highlights a growing interest in digital assets.

On-chain data indicates a flurry of whale activity in various altcoins. Notably, Chainlink whales have accumulated over 10 million LINK tokens, valued at more than $120 million, in the past two weeks.

Declining Fear of Capitulation 

Clearer regulatory frameworks across different jurisdictions have provided a significant boost to the cryptocurrency industry. The U.S. SEC has lost multiple cases against crypto projects and ceased investigations into others, while the European Union continues to advance the Markets in Crypto-Assets (MiCA) regulation. 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 a neutral sentiment, up from last week’s 25 percent extreme fear.

Failed Assassination of Donald Trump

Following the failed assassination attempt on U.S. presidential candidate Donald Trump over the weekend, his chances of re-election have reportedly increased. Trump, a known advocate for cryptocurrency, is expected to attend the Bitcoin 2024 conference in Nashville.

His campaign has garnered significant backing from prominent figures in the crypto world, including Tron’s Justin Sun, Dogecoin’s Elon Musk, and the Gemini brothers.

The Crypto Bull Cycle Continues

The cryptocurrency market is currently experiencing a macro bull cycle, triggered by the fourth Bitcoin halving earlier this year. Until Bitcoin consistently trades above $73,000, the market is expected to consolidate.

However, the anticipated approval of spot Ethereum ETFs, coupled with potential U.S. interest rate cuts later this year, could catalyze the next phase of the crypto bull run.

Also Read: XRP News: Ripple Sells 40% Stake in Tranglo: What’s Behind the Surprising Move?

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