Crypto Market Rally: Here's Why Bitcoin and Altcoin Prices are Rising

Published 2 days ago• 2 minute read

The crypto market rally continued this week, with Bitcoin price moving above $110,000 for the first time this month. Ethereum surged to $2,800, while the market capitalization jumped to over $3.45 trillion.

Some of the best-performing cryptocurrencies are Uniswap (UNI), SPX6900 (SPX), Fartcoin (FARTCOIN), Arbitrum (ARB), AAVE (AAVE), and Sky (SKY), which have jumped by double digits this year.

There are three main reasons why the crypto market rally is happening. First, there are signs that investors are buying Bitcoin and other crypto assets this year. Spot Bitcoin ETFs have accumulated over $131 billion worth of assets, while Ethereum ETFs have had inflows for four consecutive weeks.

Companies like Strategy, MetaPlanet, KUHL, TwentyOne, Trump Media, and GameStop are also buying Bitcoin. The result is that the Bitcoin supplyon exchanges has plunged to the lowest point since 2017.

Rising Bitcoin demand and falling supply is leading to higher prices. In a recent note, Bitwise said that, while 95% of Bitcoin has been mined, 95% of the population does not own Bitcoin yet. He believes that the coin will end the year at $250,000.

Second, Bitcoin has formed a cup and handle pattern on the daily chart, which will likely lead to a higher price. Such a move will likely lead to a broader crypto market rally since altcoins often track the performance of Bitcoin.

Bitcoin price — BTC chart by TradingView

Third, the crypto market rally is happening as traders watch the ongoing talks between the US and China in London. These talks have entered the third day, and analysts are optimistic about progress being made. Such progress will be positive for Bitcoin and other altcoins as it will lower market volatility.

Further, these coins are jumping because of the regulatory clarity in the United States. The US Senate is considering the GENIUS Act, which will regulate crypto prices. On Monday, the SEC hosted a roundtablefocused on decentralized finance (DeFi).

Paul Atkins, the SEC Chair has expressed his support for the industry and self-custody. He is expected to approve multiple ETFs later this year, which will lead to more inflows.

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