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Friday, April 12, 2024

Crypto Market Soars Past $2T as Bitcoin Leads Revival

In a thrilling turn of events, the cryptocurrency market has shown monumental resiliency, overturning bearish sentiments and rallying back to a staggering $2 trillion valuation. 

This impressive resurgence has been broadly led by Bitcoin—the forebearer of digital currencies—as it steadfastly hovers around the $52,000 mark.

Bitcoin Leads the Charge

Bitcoin
Credits: DepositPhotos

Bitcoin’s performance this year may well be described as a phoenix rising from the ashes, with a 22% year-to-date gain driving the overall crypto market capitalization beyond $2 trillion. 

This is a figure that has not been seen since April 2022, according to the data collated by CoinGecko.

In this stunning return to form, Bitcoin and Ether have surged by over 1% at times. Notably, Ether has not been as quick as Bitcoin in regaining its previous prowess, still grappling with the aftermath of the TerraUSD collapse in early May 2022.

This rally can be attributed in part to sector-specific factors such as the debut of US exchange-traded funds (ETFs) centered around the token. 

Major players like BlackRock Inc. and Fidelity Investments have made a significant foray into the space, attracting a whopping $3.9 billion net inflow since the ETFs began trading on January 11th.

Read More: Dogecoin Soars on Mars Speculation After MyDoge CEO’s Tweet

The Halving Effect

Looking to the future, many eyes are trained on the upcoming Bitcoin halving event due in April. 

This occurrence, which involves reducing the reward for Bitcoin mining thus curbing the crypto’s supply, is seen by many as a prop for prices based on historical precedents.

“The recent price rally likely reflects strong net inflows into US spot Bitcoin ETFs,” voiced Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC.

The TerraUSD Aftermath

The shadow of TerraUSD’s demise still looms large over Ether. It has been a challenging time for the cryptocurrency, navigating a turbulent market to slowly inch back to its previous levels. 

TerraUSD
Credits: PYMNTS

“Ether has been slower than Bitcoin in climbing back to levels preceding the TerraUSD implosion,” explains Pandl, adding a sense of gravity to the struggles that the second-largest cryptocurrency has been facing.

“The supportive narratives for Bitcoin help the whole crypto market, as correlations between BTC and other assets are high,” affirms Noelle Acheson, author of the Crypto Is Macro Now newsletter.

Also Read: Crypto Exchange Bybit Highlights Robust Reserves in Transparency Drive

The Future of Crypto – A Trillion-Dollar Question

As Bitcoin triples since the beginning of last year marking an inspiring comeback, speculators in the options market posit prices could soar beyond the previous record of almost $69,000 achieved in November 2021.

This resurgence paints a hopeful image of the cryptocurrency landscape as it attempts to navigate past regulatory hurdles and security concerns. 

But whether the crypto market can sustain this momentum remains a trillion-dollar question.

Overall, the industry continues to show remarkable resilience, striving towards a future where cryptocurrencies are an accepted part of the global financial fabric. 

As we look ahead, it’s clear that these digital assets will play an increasingly prominent role in the world economy.

Read Next: Bitcoin Layer-2 Networks: The Gateway to Decentralized Finance

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