Cryptocurrency Market Surges Amid Bitcoin Halving Anticipation and Bullish Market Indicators
Summary:
On March 28, the cryptocurrency market observed a 0.5% rise to $2.66 trillion, led by Bitcoin and Ether. The upswing reflects anticipation around the upcoming Bitcoin halving and a bullish market structure. The market's recovery is partly due to comments from Federal Reserve Board member Christopher Waller, hinting at no imminent interest rate cuts. Meanwhile, total crypto market capitalization shows a V-shaped recovery, and a surge in capital inflows into Bitcoin ETFs continues to boost market optimism. Despite the positive trends, investors are advised to conduct their own research due to inherent market risks.
On March 28, the cryptocurrency market saw an increase, with the total market capitalization experiencing a 0.5% growth to settle at $2.66 trillion. With the anticipated Bitcoin halving and a bullish market structure stimulating traders, Bitcoin's market dominance saw a slight rise of 0.1%, resulting in a 51.56% dominance. Bitcoin and Ether are leading the rise with respective gains of roughly 3% and 1.5%.
There are multiple reasons for the positive performance of the crypto market today. There's been a recovery in the crypto market prompted by the macroeconomic uncertainties and concerns over escalating inflation. The market stabilization comes after Federal Reserve Board's Christopher Waller's statements quashed expectations of interest rate cuts in June. Market trends indicate no cuts in interest rates in the approaching months, even as inflation pressure mounts.
According to the CME FedWatch Tool, the likeliness of the Fed funds rate remaining unaltered in May stands at 94.8% while the probability of a rate cut is only 5.2%. Moreover, the packed economic schedule for March 28 adds more momentum to the market, even with continued claims increasing, conflicting with the positive U.S. Gross Domestic Product (GDP) data. As per Marketwatch data, the U.S. GDP for Q4 has risen from 3.2% to 3.4%, and the GDP price index remains stable at 1.7%. However, the Jobless Claims stayed steady at 211,000, while Continuing Claims surged to almost 1.819 million, a minor drop from 1.795 million the prior week.
Since Jan. 22, the total crypto market cap has seen an 81% surge, peaking at $2.721 trillion on March 14. This swift increase led to a sharp correction and an 18% dip in value to $2.208 trillion. However, the market cap has rebounded and is currently 6% below the 27-month peak, depicting a V-shaped recovery on the daily chart, further reinforcing the strong positive momentum supporting the rally in crypto prices.
Adding to the enthusiasm around the cryptocurrency market are the launch of spot Bitcoin ETFs and the upcoming Bitcoin supply halfing event. On March 27, net capital inflows to all Bitcoin ETFs achieved $243.5 million, BlackRock’s iShares Bitcoin ETF (IBIT) attracting the most with $323.8 million inflow. Grayscale’s GBTC fund underwent another day of outflows totaling $300 million.
The launch of spot Bitcoin ETFs in the United States and the continuous flow of funds into these investment vehicles provides a bullish outlook for the market. Traders are also highly optimistic about Bitcoin's possible upswing before and after the halving event in April. Market intelligence firm, Santiment, points to the recent record highs by U.S. equities and gold as likely indicators of a bullish divergence for Bitcoin and other-alt coins.
Finally, it seems that more retail investors are entering the marketplace. However, it's essential for investors to note that the information provided does not serve as financial advice or any sort of recommendation. Investing and trading come with inherent risks, and as such, readers are urged to conduct their research when making any decisions.
Published At
3/28/2024 11:10:25 PM
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