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Why is the crypto market up today – BTC flirts around $30k

TL;DR

  • The crypto market sees a green industry in the last 24 hours – courtesy of multiple economic sentiments.
  • Crypto market analysts point out the recent market surge stems from concerns about banks in the wake of Moody’s downgrade of ten mid-sized US banks and an unexpected Italian windfall tax.
  • Shiba Inu leads the market surge due to the effect of the “Bit Pay” payment segment.

The crypto market has been struggling to recover since the deathly crypto winter in 2022. Today, the digital asset industry has experienced a surge, and here is how and why. According to on-chain data XRP and Solana’s SOL led gains among crypto majors as bitcoin (BTC) posted steady growth in the past 24 hours.

Crypto tokens surge

Rollbit (RLB) and unibot (UNIBOT) alternative tokens drove the most gains for traders due to separate catalysts. The crypto casino Rollbit revealed plans to buy and burn its tokens using daily platform revenues, while the Telegram bot Unibot rose on the back of rising social sentiment for its tokens, sparking expansion.

Elsewhere, Reddit-based tokens moon (MOON) increased by 14% for a second consecutive day.

One market analyst opined that the recent growth of cryptocurrencies likely occurred as investors digested a new surge of concerns about banks in the wake of Moody’s downgrade of ten mid-sized US banks and an unexpected Italian windfall tax.

In that line, investors are flocking to the largest cryptocurrencies to store large quantities of capital away from banks, which offer deposit insurance on smaller sums.

Bank woes boost crypto

In the past 24 hours, the crypto market has increased by 1.4%. The positive momentum can be attributed to a new surge of concerns regarding banks following Moody’s downgrade of ten mid-sized U.S. banks.

According to CoinGecko, the global crypto market cap is currently $1.23 Trillion, a change of 1.72% over the past 24 hours and an increase of 8.02% over the past year. The current market cap of BTC is $582 billion, representing a Bitcoin dominance of 47.13 percent. I

n the meantime, the market cap of Stablecoins is $126 billion and represents 10.1% of the total market capitalization of cryptocurrencies.

Throughout Tuesday, Bitcoin gained over 3%, with a mini short-squeeze in low-liquidity morning trading momentarily pushing the price above $30,000 before retreating to $29.7K at the time of writing. Bitcoin could maintain a negative correlation with the performance of bank equities, profiting from their decline. 

However, in the absence of actual industry bankruptcies, this is analogous to a reflex with a short-lived effect. Right now, the BTC Fear and Greed index sits at 50.

Technically, the market has failed twice this month to regain its position above the 50-day moving average. The ability to consolidate above $30,000 will be a turning point, confirming the end of the four-week downtrend.

Shiba Inu price surges

Shiba Inu’s price is rising today, owing to a general crypto market upswing and a positive fundamental aspect. On August 9, the SHIB price increased by roughly 5.75% to $0.00001005, following a two-day rally trend. Overall, the price has increased by almost 15% since its previous low of $0.0000947.

On August 8, BitPay, a bitcoin payment processing startup, introduced “Bill Pay,” a new service that allows cryptocurrency users to pay bills directly from their wallet.

Shiba Inu is one of the service’s many listed tokens, which may have bolstered its upside chances among traders on August 9. Furthermore, the token may have risen as a result of the digital asset market’s overall advances, fueled by prospects for a spot Bitcoin ETF approval in the United States.

From an on-chain perspective, the majority of Shiba Inu’s wealthiest addresses have accumulated SHIB tokens during the last two days of its price recovery.

Notably, the 100 million–1 billion SHIB address cohort (green) has increased marginally since August 7, whereas the 1 billion–infinity SHIB address cohort (royal blue), which accounts for 96.5% of the total SHIB supply in circulation, has remained unchanged.

Bitcoin flirts around $30k amid the incoming CPI data

Bitcoin has risen 2.3% in the last 24 hours to near $30,000 as investors await the release of the July Consumer Price Index, a measure of inflation in the United States, on Thursday. Core inflation, which includes volatile food and energy prices, is predicted to be 0.4%, significantly lower than the rate recorded a year ago. Lower inflation should make the Federal Reserve less inclined to hike interest rates.

Additionally, the Fed is launching a new program to monitor banks’ crypto activity, and it has clarified its demand that institutions under its jurisdiction obtain authorization before engaging in digital-assets transactions. 

The move announced on Tuesday makes no changes to the rules governing crypto banking. Rather, it just describes how the central bank intends to manage to monitor, placing transactions with the crypto industry under a new “novel activities supervision program” in which the Fed’s specialized experts in digital assets would work alongside the regulator’s regular supervisors. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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