- Bitcoin and altcoins take the total crypto market valuation above $3.41 trillion, accompanied by a 49.78% increase in trading volume over the past 24 hours.
- The SEC’s first-ever decentralized finance (DeFi) forum and easing U.S.-China trade tensions provided stability and optimism.
Bitcoin (BTC) price reclaimed $110,000 this week after major declines recently, showing that the crypto market is on the rise again. Moreover, since Bitcoin has risen more than 50% from its previous low in April, crypto markets have positively reacted.
Altcoins such as Aave (AAVE), Dogwifhat (WIF), Uniswap (UNI), and Fartcoin (FARTCOIN) have followed suit, posting double-digit gains in recent sessions. Thus, crypto market valuation has risen above $3.41 trillion. Further, the market’s trading volume has gone up by 49.78% to $134.64 billion in the last 24 hours, indicating renewed investor interest. The reasons associated with the latest rally include:
SEC Organizes Landmark Roundtable About DeFi
Investor confidence received a boost following the U.S. Securities and Exchange Commission’s (SEC) first-ever decentralized finance (DeFi) forum. The roundtable was held to involve key leaders from both blockchain and crypto fields to talk about laws affecting digital finance.
SEC Chairman Paul Atkins strongly supported cryptocurrencies and pointed out the importance of looking at new ways to manage funds and assets. Atkins decided not to follow Gary Gensler’s strategy of focusing on enforcement in the crypto sphere by pursuing actions against well-known firms like Ripple, Uniswap, Coinbase, and Kraken.
Netizens believe that the SEC will soon allow the launch of altcoin exchange-traded funds (ETFs) involving Ripple’s XRP, Polkadot Stellar, Hedera, Sui, Tron and Cronos, as reported by CNF earlier.
Tariff Tensions Between U.S. & China Subside
The ongoing talks between the United States and China in regard to trade and technology seem to be supporting the growth of cryptocurrencies, as highlighted in our last story. Trade envoys from both nations are meeting in London in a bid to ease long-standing tensions.
According to leaked materials, China might be willing to export critical rare earth to the U.S. if it receives more access to semiconductor technology. Reports suggest that discussions are making great progress on some other outstanding trade issues, which offers markets more stability.
When global issues are reportedly diminishing and the economy remains stable, investors usually move their funds into riskier options, such as cryptocurrencies. Such inflow could be a catalyst for the recent rebound.
Bitcoin Price’s Strong Technicals
Experts partly attributed the rise to Bitcoin price’s recovery. Currently, BTC price is well above its 50-day and 100-day Exponential Moving Averages (EMAs), highlighting a bullish sentiment with possibility of further surge. Besides, many market analysts also observe that the “cup-and-handle” pattern is forming.
The cup is 30% deep, which implies that BTC price may rise as high as $142,000 in the short-term. In case Bitcoin witnesses such a rally, altcoins could follow, leading to a major bull run.
Elon Musk and Trump’s Feud Eyes Potential Resolution
Market participants are excited as there is a chance for Donald Trump and Elon Musk to settle their differences after a clash on policy-making last week. According to certain reports, Musk has discussed fixing his problems with the U.S. president to guard SpaceX’s connections with the government.
Even though Trump has come out against reaching a deal, some analysts say he may change his tone in the future. Both men remain influential within crypto circles, and any sign of cooperation is viewed positively by the market.
