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Why is the crypto market up today? BTC hovers around $47K

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TL;DR

  • The second week of 2024 trades on the green, with bitcoin hovering around $47,000 with a $913 billion market cap, signifying a 51.38% market dominance, while the global crypto market cap stands at $1.78 trillion.
  • Today’s rally is backed by the expectation of BGTC approvals in the next few hours that could shape the future of 401(k), IRAs, and pension plans.
  • The industry is up on the back of Bitcoin halving, which is expected in April 2024, less than 100 days away.

Today’s surge in the crypto market, with Bitcoin (BTC) hovering around the $47,000 mark, has captivated the attention of investors, enthusiasts, and analysts alike. Several interconnected factors contribute to the volatility and subsequent surges in the crypto market, and today’s rally is no exception. Here is what’s happening.

Crypto ecosystems pick up pace

The rise in the cryptocurrency market is attributable to an array of significant factors. The current valuation of the global crypto market cap stands at $1.78 trillion, reflecting a twenty-four-hour change of 1.84% and a yearly change of 100.96%. 

The current market cap of Bitcoin (BTC) is $913 billion, which signifies a 51.38% market share for Bitcoin. With a market capitalization of $134 billion, stablecoins account for 7.56% of the total crypto market capitalization.

As per CoinGecko, the current value of Bitcoin is $46,618.41, accompanied by a 24-hour trading volume of $39,532,825,291.26. This signifies a 24-hour price increase of 3.91% and a 7-day price increase of 2.70%. The fear and greed index stands at 76 signifying extreme greed.

The current price of Solana (SOL) is $99.95, with a 24-hour trading volume of $3,947,771,246.15. This indicates a 5.94% gain in the last 24 hours and a -9.76% decline in the last 7 days.

The current price of Shiba Inu (SHIB) is $0.059238, with a 24-hour trading volume of $206,275,965.25. This indicates a 0.07% price gain in the last 24 hours and a -13.31% price loss over the last 7 days.

Cardano (ADA) is currently priced at $0.5108, with a 24-hour trading volume of $668,212,968.93. This indicates a 0.30% price increase in the last 24 hours and a -16.98% price reduction over the last 7 days.

Ethereum, the second largest crypto, is up today due to the market excitement over the possibility of ETF approval. The current price of Ethereum (ETH) is $2,264.76, with a 24-hour trading volume of $23,432,456,023.40. This indicates a 0.18% increase in the last 24 hours and a -4.58% decline in the last 7 days.

Reasons why the crypto market is trading green

The expectation that the United States Securities and Exchange Commission (SEC) will approve the first spot-based Bitcoin ETFs is a primary driver of today’s crypto market increase. The market views approval as a sign of a growing investor base, with Standard Chartered predicting a Bitcoin price surge reaching $200,000 by late 2025.

According to reports, three of these applicants expect the SEC to accept their applications on Wednesday, with trading beginning as early as Thursday. Two of these firms said they expect the SEC decision to be made after Wednesday’s market ends.

The approvals could further broaden the adoption of the world’s largest crypto, perhaps making bitcoin an important component in everyday people’s 401(k), IRAs, and pension plans.

Additionally, the market sentiment is becoming more favorable in light of the fact that Bitcoin will halve in less than 100 days. It will reduce the supply rate of new Bitcoin by half, a factor that has historically led to higher prices. 

Tech stocks rally, beating regular tradFi shares

The current ascent of the crypto market is additionally influenced by a rally in technology equities and a depreciation of the U.S. dollar. This has generated a “risk-on” sentiment, which has increased the investment appeal of digital assets.

Since November 2023, a positive daily correlation has been observed between the tech-heavy Nasdaq Composite Index (IXIC) and the digital asset market. Since then, these markets have increased by 40% and 18.5%, respectively. In the interim, the U.S. dollar index (DXY) has declined by 4.45%.

Whale movements affect the industry

Insight has been aroused by recent transactions involving substantial amounts of Dogecoin (DOGE) and Shiba Inu (SHIB), which indicate an increase in trust within the volatile meme coin sector. 

Whale Alert, a platform that monitors blockchain transactions, has recently reported significant whale activity associated with the meme currencies Dogecoin and Shiba Inu. Whale Alert data revealed that a whale recently transferred a staggering 1 billion DOGE, valued at $78.85 million, from Binance to an unidentified wallet. Significantly, the address of the wallet is specified as DU8gP…guBr5.

Concurrently, another whale amassed 500 billion SHIB, equivalent to $4.73 million, from Gate.io, according to Whale Alert. Notably, this same whale transferred an astounding 1.08 trillion SHIB (approximately $10.27 million) from cryptocurrency exchanges such as Binance and Gate.io over the last twenty-four hours.

It is worth noting that these high-stakes transactions indicate an increasing level of investor trust in meme currencies despite the ongoing debate surrounding their volatile characteristics. However, the bullish trajectory observed in the wider digital asset industry is also indicative of the increasing attention traders are paying to digital assets.

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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