The value of the cryptocurrency market increased by 5.04% to $2.29 trillion today, demonstrating the market’s remarkable gains. The flagship cryptocurrency, Bitcoin, increased by 5% to $65,810, and other notable gainers were Ethereum, Solana, and XRP. What is behind the crypto surge? Let’s examine the primary factors now.
Kamala Harris Declares Support for Crypto
U.S. Vice President Kamala Harris has made a noteworthy announcement regarding her intentions to establish a regulatory framework for cryptocurrencies. The goal of this endeavor is to safeguard investors—particularly in the Black community—and provide a safer environment for accumulating money in the cryptocurrency industry.
Increasing Buying Pressure
The CEO of CryptoQuant recently brought attention to an intriguing change in the market. Major cryptocurrency exchanges currently have more buy orders than sell orders, which is different from previous patterns.
From 2020 to 2022, there was a downward pressure on the price of Bitcoin as sale orders frequently exceeded buy orders. Prices are rising as a result of this recent shift, which puts purchasers in the lead and implies greater confidence in Bitcoin’s future worth.
Stablecoin Liquidity Increase
The increase in stablecoin liquidity is another element contributing to Bitcoin’s ascent. With stablecoins representing $169 billion of the market capitalization, such as Tether (USDT) and USD Coin (USDC), there is more purchasing power available.
A lot of investors keep these stablecoins on exchanges so they may rapidly purchase Bitcoin at favorable prices. Because of this liquidity, more buyers are willing to enter the market, which keeps it active and raises the price of Bitcoin.
‘Uptober’ in Full Swing
In the past, October has shown to be a prosperous month for Bitcoin. Over the years, October has seen some of the highest increases for Bitcoin, with some seeing gains of up to 60%. The current enthusiasm is increased by the fact that investors are keeping a close eye on this trend and may anticipate further increases as the month goes on.
Macroeconomic Factors Indicate Bullish
The rise of Bitcoin is also being influenced by macroeconomic forces. Even though U.S. CPI and PPI statistics show price hikes, Bitcoin has remained robust while fears about inflation persist in traditional markets. This change is pushing some investors toward digital assets like Bitcoin and away from traditional assets.
Conclusion
The recent surge in the cryptocurrency market, fueled by factors such as increased buying pressure, higher stablecoin liquidity, and macroeconomic shifts, highlights the growing confidence in digital assets like Bitcoin.
Vice President Kamala Harris’ announcement of plans for a crypto regulatory framework adds a sense of legitimacy and protection for investors, especially marginalized communities, which could further boost adoption.
The rise in Bitcoin’s value is also driven by favorable seasonal trends and liquidity from stablecoins, allowing investors to quickly capitalize on market movements. Overall, these factors suggest a bullish outlook for the crypto space, with broader institutional support potentially driving further growth.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.