What’s Behind The Crypto Market Surge Today?
Highlights
- The crypto market is rallying with a Donald Trump victory looking very likely.
- The market is also up because the Bitcoin price broke above $70,000 after four months.
- There is increased demand in the market especially with money flowing to the Solana and Sui ecosystems.
The crypto market is up today, increasing over 5% in the last 24 hours. This price rally for crypto assets has been led by Bitcoin, which broke above $70,000 for the first time in four months and is well on course to reach its all-time high (ATH) before the month ends.
Why The Crypto Market Has Surged Today
The crypto market has surged today due to several factors. Firstly, Donald Trump’s lead in the polls continues to extend, providing a bullish outlook for cryptocurrencies. This is based on the fact that Trump has already declared his support for crypto assets.
Therefore, the market is pricing into the likelihood of the former US president winning the November 5 elections. A Trump victory is most especially bullish for the market since it will likely bring about regulatory clarity in the US which would ultimately send prices higher.
The US Securities and Exchange Commission (SEC) has continued to clamp down on the crypto industry, negatively impacting the market. For instance, CoinGape reported that crypto firm Consensys cited the US SEC’s “Abuse of Power” as the reason they had to sack 20% of their workforce.
Another reason the crypto market is up is undoubtedly thanks to BTC, which finally broke above $70,000 after four months. The Bitcoin price is known to lead the way, and other cryptocurrencies follow suit as the flagship crypto moves to the upside.
Bitcoin’s price surge has been due to factors like the Spot Bitcoin ETFs. These funds have recorded three consecutive weeks of net inflows and are on course to record their fourth consecutive week of net inflows. This massive demand for these funds has brought significant buying pressure for the leading crypto.
These funds were the primary reason Bitcoin rose to its current ATH of $73,000 in May earlier this year and could again spark the BTC (and crypto market) rally to new highs.
Other Cryptocurrencies Leading The Way
Besides Bitcoin, some other crypto assets are also sparking the crypto market rally because of the bullish developments in their respective ecosystems. For instance, the Solana price outperformed the market last week as the meme coin frenzy on the network heightened.
This led to a massive demand for SOL, which ultimately caused the coin to rally significantly. This demand for Solana was evident as the network outpaced all other chains, including Ethereum, in decentralized exchange (DEX) volume.
Dogecoin is another standout coin in the crypto market. Two weeks ago, the top meme coin rallied over 30% in seven days. Since then, it has maintained its upward trend and is among the best performers, with the crypto market surging. The Dogecoin price is going up partly thanks to Elon Musk’s proposed Department of Government Efficiency, whose ‘D.O.G.E’ acronym alludes to the foremost meme coin.
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