The cryptocurrency market has recently seen a surge in demand that pushed BTC to cross the 6-month high of 24k. This trend was followed by other cryptocurrencies, with Ethereum leading the pack with an 8% rise.
On Wednesday afternoon, Bitcoin shot up 9.1% to a two-week peak of $24K due to several liquidations and a risk-on sentiment occurring worldwide. This surge in the token’s price consequently pushed the global cryptocurrency market cap 6.4% higher than before, reaching an astounding amount of $1.11T, according to CoinMarketCap data.
All significant cryptos saw a surge in value during the session, despite looming regulatory pressures and positive economic figures.
In the last day, traders have liquidated an impressive $61.2M worth of their bearish bitcoin (BTC-USD) positions; this marks the largest number since Jan 24th. This mass exodus from short trades has caused a surge in BTC’s cost, according to data provided by Coinglass.
The stock market closed in the positive despite trading unevenly for much of the day due to lingering anxieties about Fed policy, with a short squeeze playing an important role. Crypto-related stocks, however, remained strong in green throughout trading.
In the past few weeks, crypto prices have faced a great deal of uncertainty as US Securities and Exchange Commission actions, and warnings have caused speculation about further regulatory measures.
Last week, Kraken settled its staking product, while Paxos discontinued the production of Binance-branded BUSD tokens. This created a stir as rumors began to surface that other stablecoins, such as Circle’s USDC, were at risk for potential regulatory action. Despite the regulatory pressure, Bitcoin and other major cryptocurrencies are rallying.
The top gainers of the day are Optimism OP which is up by over 19%, Loopring $0.4788, and RendeToken, up by over 17%.
The worst-performed tokens today are Fei USD, Pax Dollar USDP, Tether USDT, and BUSD. These stablecoins have declined by a minor figure of below 2% each. Polygon MATIC is leading the popular altcoins with a 10.6% increase, followed by Binance Coin, up 8.2%, and Dogecoin, up by 3.28%.
The overall crypto market has seen significant growth over the past few weeks and is poised to reach even higher values as traders flock to take advantage of potential gains. With encouraging signs from the stock market, continued liquidations, and risk-on sentiment pushing prices up, BTC and other cryptos seem headed for another bull run.
Despite the looming regulatory pressures, investors remain optimistic about future gains from the crypto market.
