Why is Crypto Market Up Today?

Why Is Crypto Market up Today?
Source: Investinghaven

The wider crypto market has staged an impressive 8%+ advance in the last 24 hours. With the total market capitalization crossing back above the $2.2 trillion threshold, Bitcoin remains the chief catalyst behind renewed buying impetus industry-wide.

Crypto’s trading volumes likewise reveal a broad resurgence, having doubled over 24 hours to tag $105 billion. Stablecoin activity accounts for the vast majority at 92%, inferring recent recharging ahead of fresh accumulation flows elsewhere. 

Quality Rotation Persists 

On Monday, digital asset manager CoinShares reported crypto investment products saw a fourth straight week of positive inflows totaling $598 million, with Bitcoin vehicles attracting the majority as institutional conviction grows. 

Many observe that flowing demands partly reflect utilizing crypto to hedge unreliable monetary regimes and raging fiat inflation today. And the heightened embrace of Bitcoin and crypto assets seems nowhere closer to abating at the institutional tier.

MicroStrategy Continues Stacking Sats 

Just yesterday, Nasdaq-listed MicroStrategy Inc. and its influential CEO, Michael Saylor, disclosed accumulating another 3,000 Bitcoin for $155 million. This latest haul expands the enterprise analytics platform’s holdings to around 193,000 BTC, worth over $10 billion per monitor.

The news propelled MicroStrategy stock by over 8% Monday as shareholders cheered the swelling strategic Bitcoin allocation, now approaching 1% of total supply.

Countdown to Halving in Full Swing 

Meanwhile, Bitcoin finally crossed $56,600 on Monday for the first time in two years, catalyzing intense bullish sentiments as the crypto fear factor fades drastically into a short squeeze.

With Bitcoin’s impending block reward halving now just 50 days out, the monthly Relative Strength Index has also breached 70 into overbought territory, replicating the early 2021 bull run. 

The technical signals confirm theories that the current market cycle mirrors and rhymes with past patterns. And over $378 million worth of leveraged positions have now been liquidated recently, chiefly short exposures, as the rally invalidated many bearish opinions through resistance.

So between the clear institutional inflow uptrend and Bitcoin’s reliable halving dynamics now accelerating into full swing, analysts broadly cheer the return of the fabled parabolic bull run phase ahead.

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