Why is the Crypto Market Up Today? Here Are The Top Factors

The post Why is the Crypto Market Up Today? Here Are The Top Factors appeared first on Coinpedia Fintech News

As Bitcoin (BTC) price crossed over the $50k mark in the past 24 hours for the first time since the onset of the 2022/2023 bear market, the altcoin industry joined in the dance. According to the latest market data, the total crypto market cap gained around 4 percent to hover about $2 trillion on Tuesday during the early Asian session.

The sudden crypto market bump resulted in liquidations worth nearly $200 million, with the majority consisting of short traders. Solana (SOL) network continued with its bullish dominance, gaining about 8.3 percent to trade around $114 in the past 24 hours.

More gains are expected in the coming weeks after the altcoin market cap confirmed a bullish pennant breakout on the weekly time frame.

Also Read : Top 10 Crypto Billionaires in 2024

Top Reasons Crypto Gained Today

General Bullish Breakout

With the heightened demand for Bitcoin and other digital assets worldwide, as demonstrated by the high volume of the recently launched spot Bitcoin ETFs, the crypto market is expected to follow the traditional stock market in a bullish outlook.

Moreover, several stock indexes with a high correction with crypto prices – led by the S&P500 and the Dow Jones Industrial Average Index – have already risen to their respective all-time highs (ATH). According to a weekly report by CoinShares, digital assets investment products recorded an inflow of around $1.1 billion last week, led by Bitcoin, Ethereum, Cardano, and Solana.

Heightened Demand from Institutional Investors

The approval of spot Bitcoin ETFs in the United States that have accrued more than 682k Bitcoins has inspired more fund managers to offer Ethereum-focused ETFs. On Monday, $1.5 trillion assets manager Franklin Templeton joined the Ethereum spot ETF race by applying with the US SEC.

With the US SEC having a deadline of May to issue a decision on the other Ethereum spot ETF applications, market experts believe there is a high chance of inevitable approval.