The Crypto market started the week on a downside, but a strong recovery has since reversed the bear cycle. In the last 24 hours, the market has been showing signs of rallying, and major Cryptos are in the green.
The market capitalization has surged to $970 billion at the time of press and is on course to hit $1 trillion in the weekend if the trend continues.
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Bitcoin Hits A 5 Week High
BTC price had hit a high of $22,000, the bears have corrected the peak, and the price has since dropped to $21,845 on Friday morning Sydney time. Nonetheless, the leading Crypto has surged by 7.64% in the last 24 hours, culminating the 7-day gain to an impressive 12.24%.
The volume of BTC transactions is down by around 300,000 BTC at 1,337,000 tokens. In comparison, the volume of transactions last Friday morning was at 1 698,000 BTC, and the Crypto was bearish at the time when it slid below the $20,000 level of support.
It can be deduced that as the circulating supply of BTC in exchanges gets thinner, the price equilibrium rises, fueling the ongoing rally.
Altcoins Are Also Rallying
The dominance of BTC in the crypto market has marginally increased from 0.3% to 43% in the last week. Hence, a Bitcoin rally is replicated in the market, and other Altcoins are also in the green. Ethereum, with a market dominance of 15%, has grown by 6.84% in the last 24 hours, and the 7-day gain is now up by 17.74%, which outperforms BTC.
Other Altcoins such as XRP, ADA, SOL, and DOGE are up by 7%, 3%, 3%, and 4% in the last 24 hours with substantial weekly gains.
Despite the rally, the inverse relationship between market capitalization and the transaction volume is phenomenal and peculiar. But this trend shows less investor activity boosts prices in the short term.
Investors’ Confidence in Crypto Is at Its Peak
According to the Fears and Greed Index, the greed factor has doubled in the last five days. This signals increased investor confidence in the Crypto market, and many investors anticipate a correction of the Crypto winter hence the “Crypto Rush.” Although there are some aspects of Fear of Missing Out (FOMO) in this perspective, analysts have speculated that the market is due for a correction at one point.
At one point, a JPMorgan financial analyst predicted that BTC is undervalued, and its actual price is $38,000. Another market analysis article by Fidelity’s Raoul Pal pointed out that BTC was oversold at the peak of the bear market. Therefore, a market correction is long overdue, and the Crypto market may rally in the short term.