The cryptocurrency space has added a whopping $35 billion to its overall market cap thanks, in part, to bitcoin surging well beyond the $8,000 mark.
The Crypto Market Owes Its Gains to Bitcoin
What’s even more impressive is that during yesterday’s early morning hours, the number one cryptocurrency by market cap surged into the low $9,000 range, which means that its present price is something of a correction or a “settling” at something lesser. Still, the market is in extraordinary shape considering where it was just four to five weeks ago.
While it didn’t last, Matthew Dibb, co-founder of Stack, explained why $9,000 came into view for bitcoin. He says:
The sudden jump in bitcoin’s price to well over the $9,000 mark can be explained by the fact that the bulls have been triggered by the upcoming halving event and the anticipated appreciation of BTC’s value in its aftermath. For those buying into bitcoin now, many see this as an opportunity to buy BTC at essentially discounted rates ahead of a post halving price increase.
The jump can be attributed to the halving as Dibb explains in his comment, but the stimulus packages that the U.S. is unveiling in droves has also helped. Vijay Ayyar – head of business development at Luno, a London-based crypto trading platform – states:
My sense is that overall markets are not reflecting reality on the ground though, but this is also the result of the Fed in the U.S. being extremely clear that they will do anything to make sure there is economic stability. We could be seeing a lot of money flowing into equities and crypto as well, as a result of the new money printing.
What Ayyar isn’t really acknowledging is that many people have already begun to spend on BTC in anticipation of the halving event set to occur in the next 11 days. The money is coming from the stimulus checks they’ve received – at least that’s the sentiment, as many crypto exchanges such as Coinbase in the U.S. claim an increase in purchases worth approximately $1,200 or around that range, which is the amount Americans are getting in their stimulus checks.
Everything’s Growing Like Crazy
The good news is that it’s not just bitcoin that’s on the rise. Other cryptocurrencies, such as Ethereum for example, have surged past the $200 mark for the first time in nearly two months. Other assets, like bitcoin cash (BCH), Litecoin (LTC) and EOS (EOS), have all shot up by anywhere between eight and ten percent within the last two days.
In addition, stocks are also on the rise, with the Dow Jones ending yesterday’s trading hours more than 500 points in the green, and the S&P rose more than two percent to enjoy its highest trading month in over 40 years.