The Crypto Market Rally Explained
The global crypto market cap has surged by over 6% to $1.75 trillion, reaching levels not seen since May 2022. This increase is driven by a 30% rise in total crypto market volume over the past 24 hours. Bitcoin dominance has also risen to 50.94% after an impressive 8% rally. Ethereum price has soared by 7% and is approaching the $3,000 mark.
Reasons Behind the Bitcoin and Crypto Market Rally
Despite concerns over Bitcoin and Ethereum open interests being wiped out during a recent $11 billion annual expiry, the crypto market began 2024 with a bullish rally. The positive sentiment is fueled by expectations of a potential spot Bitcoin ETF approval by the U.S. Securities and Exchange Commission (SEC) around January 10, 2024.
Liquidations and OI Growth
In the last 24 hours, there have been over $160 million in liquidations, with significant shorts liquidation of more than $130 million. This has resulted in a “green” day for the broader crypto market. Additionally, total Bitcoin futures open interest (OI) across all exchanges has increased by almost 10% to $20 billion. Ethereum futures OI has also risen by 9% to $8.24 billion.
Bitcoin Funding Rate and Coinbase Premium Gap
The Bitcoin funding rate has reached a staggering 66%, indicating strong bullish sentiment among investors who are holding their positions. The Coinbase Premium Gap has also started to increase again, suggesting significant buying pressure on Coinbase and influencing BTC price movement.
Bitcoin and Altcoin Prices
Bitcoin price has surged by 8% in the past 24 hours, currently trading at $45,765. Ethereum has climbed by 7%, while SOL has experienced a 12% skyrocket in price. Other altcoins like XRP, ADA, AVAX, DOGE, DOT, and MATIC have also seen gains ranging from 3% to 7% amid the broader market recovery.
Hot Take: Crypto Market Reaches New Heights
The crypto market is off to a strong start in 2024, with the global market cap reclaiming the $1 trillion mark and Bitcoin and Ethereum leading the rally. Positive sentiment and expectations of a potential spot Bitcoin ETF approval have contributed to this surge. The increase in trading volume and open interest growth further indicate growing interest and activity in the crypto market. As the market continues to gain momentum, investors are closely watching Bitcoin funding rates and Coinbase Premium Gap for potential price movements. Overall, the crypto market is poised for an exciting year ahead.
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