Bitcoin and other digital assets have recently experienced some noteworthy price swings. Bitcoin has jumped by more than 5 percent, reaching a value of $30,000 at the time of writing, while Ethereum has also seen a 4 percent increase, currently sitting at $1,620.60.
But… Why? You don’t have to wonder any longer. Read on!
Altcoins Show Growth
Popular alternative coins like Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC) have all displayed positive gains. Bitcoin SV (BSV) has remained the top performer for the second day in a row, with a remarkable 24-hour gain of more than 22 percent. On the flip side, ApeCoin (APE) is the biggest loser, enduring a 24-hour dip of more than 3 percent.
The total global crypto market cap currently stands at $1.11 trillion, indicating a 2.85 percent gain in the past 24 hours.
Also Read: Crypto Market Analysis: Here’s What’s Next for Bitcoin, Ethereum & Altcoins
Why Is Bitcoin Surging?
Bitcoin’s surge beyond $28,600 coincided with an announcement by the US Federal Reserve Chair, Jerome Powell, indicating that the Federal Reserve is likely to maintain current interest rates in November and possibly increase them in December. This announcement was accompanied by a modest 6-basis point uptick in the 10-year US Treasury yield. Consequently, the market displayed a bullish sentiment, propelling Bitcoin’s growth by more than 8 percent in the past week.
Ark Investment’s Approval
Moreover, the recent news of ARK Investment’s approval for a Bitcoin ETF on January 10 also played a role in bolstering investor confidence. External factors, like ETF approvals, can significantly impact Bitcoin’s journey, contributing to its dynamic nature amid growing optimism and pending ETF decisions.
Read More: Bitcoin Price To Hit $42K – $56K with BlackRock’s ETF Approval – Matrixport Research Report
Liquidations
In the past 24 hours, there was $25 million in liquidations. Most of these liquidations, specifically over $20 million, involved forcefully closing BTC short positions. This information was reported by CoinGlass.
Ripple Price Surge
Ripple’s price saw an impressive rise of over 7 percent following the US SEC’s decision to drop charges against Ripple Labs’ CEO Brad Garlinghouse and Chairman Chris Larsen.
Gemini, Genesis, DCG Slammed
In an unexpected twist, New York Attorney General Letitia James filed a lawsuit against significant cryptocurrency entities, including Gemini Trust, Genesis Global, and Digital Currency Group (DCG). The lawsuit alleges massive investor fraud, surpassing $1 billion, and impacting over 230,000 investors. The goal is to seek justice for defrauded investors, which, in turn, influences buying pressure.
But the Market Stands Strong!
Despite regulatory concerns and rising interest rates, Bitcoin remains steadfast, hovering around $28,600. The lawsuit adds a layer of complexity to the regulatory landscape, but the crypto market continues to operate.
The recent surge in the crypto market, fueled by the US Federal Reserve’s stance and the dismissal of the Ripple vs. SEC lawsuit, underscores the resilience and dynamism of digital assets.
Despite the challenges, Bitcoin and other cryptocurrencies continue to capture the spotlight, demonstrating growing confidence and promising ongoing excitement and innovation.
Source: https://coinpedia.org/news/why-is-the-crypto-market-up-today-2/