Why Is The Crypto Market Rising Today?
Highlights
- Cryptocurrency prices are rallying in a strong Sunday pump amid low daily trading volumes.
- Ethereum is leading the charge with over 5% gains while ADA and XRP are surging.
- Rising institutional demand and new regulatory clarity from the US is driving the weekend rally.
While traders braced for a lull in prices, the crypto market is buzzing with several assets racking impressive daily gains. The “Sunday Pump” sees ETH, XRP, ADA, DOGE, and SOL post respectable gains as the crypto market capitalization inches toward $4 trillion.
The Crypto Market Adds Over $46 Billion In A Day
According to data from CoinMarketCap, cryptocurrency prices are surging today, with the market gaining nearly 2%. At press time, the global cryptocurrency market capitalization sits at $3.9 trillion after adding over $46 billion in a rally led by Ethereum.
The largest altcoin has breached the $3,700 mark, rising by 5.74% over the last day. Ethereum’s rise has seen Bitcoin’s dominance crash, capping off an impressive week that saw the asset rake in a near-30% spike.
XRP is still buzzing from setting a new all-time high, rising by 3.79% in a strong Sunday Pump. XRP bulls have their crosshairs on a potential rally to $4, while Solana’s price is holding the $182 mark after gaining 3.17% in the crypto market.
Dogecoin and Cardano are matching Ethereum’s pace to post gains of over 5%. Currently, ADA and DOGE are trading at $0.8 and $0.2, respectively. Among the top ten largest cryptocurrencies by market capitalization, Bitcoin has raked in the lowest daily gains, adding only 0.5% despite Michael Saylor’s Strategy buy signal.
While the Sunday Pump has raised a few eyebrows, pundits are urging investors to proceed with caution in view of low trading volumes. Daily trading volumes in the crypto market have fallen by 9.71% over the last to settle at $148 billion.
Institutional Interest And Regulatory Clarity Sustains Weekend Surge
Several reasons account for today’s Sunday pump in the crypto market, with the GENIUS Act signing adding to the tailwind for assets into the weekend. Furthermore, the House of Representatives’ passing the Anti-CBDC Surveillance State Act and the GENIUS Act on the eve of the weekend is contributing to a sustained rally.
A short squeeze is in play for Ethereum with over $500M in leveraged shorts primed for liquidation if ETH reaches $3,800. Apart from the short squeeze, heavy institutional interest from Ethereum treasury companies keen on outperforming themselves is driving prices for the largest altcoin.
Ethereum ETF inflows have set a daily record high of $717 million after a red-hot streak that saw them pull in nearly $1 billion in a week. Approval odds for XRP ETFs have spiked following the launch of the ProShares Ultra XRP ETF.
On the macroeconomic side of things, rising speculation of a Fed rate cut in the coming months is stoking optimism for crypto market traders. The Federal Reserve President Mary Daly has made a strong argument for two Fed rate cuts before the end of 2025.
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