Global crypto market cap sees 3.8% surge fueled by Bitcoin’s revival
Bitcoin has ignited a widespread recovery effort in the market, resulting in a 3.8% surge in the global cryptocurrency market capitalization and a significant increase in trading volume due to heightened buying power.
Remarkably, Bitcoin (BTC) has recently made a comeback against bearish trends, reclaiming the losses experienced in the past few days and causing a shift in market dynamics. As a result, the global cryptocurrency market capitalization has surpassed the $1.4 trillion mark once again, experiencing a 4.44% increase in the past 24 hours and reaching $1.43 trillion.
Additionally, there has been a resurgence in trading activity, with the global trade volume witnessing a spike of 5.97% to reach $70.22 billion. BTC has surged by 4.06%, while Ethereum (ETH) has seen a rise of 2.61% within the last 24 hours. This pattern indicates a growing buying pressure in the market.
A recent disclosure by Santiment confirms this trend, highlighting a surge in activity for Tether (USDT), the dominant stablecoin in the market. Santiment reveals that the volume of USDT has reached an 8-month high of $50 billion, which can be attributed to increased accumulation by whales.
Interestingly, transactions involving USDT by whales have significantly increased, with over 40,000 transactions worth $100,000 or more being carried out on a weekly basis. The market has not witnessed such a milestone since March.
This bullish momentum follows a previous market slump, where the global cryptocurrency market capitalization plummeted by over 3.5% from $1.4 trillion to $1.35 trillion on November 14, resulting in a loss of over $50 billion in valuation within a single day.
The decline in Bitcoin’s value triggered this substantial drop, as the leading cryptocurrency fell below the $35,000 mark on November 14. This sudden decline led to significant liquidations amounting to $300 million.
On November 14, BTC experienced a 2.50% dip, marking its largest intraday loss in over two months and continuing a losing streak that began on November 11. This downturn caused a collapse in the entire market, leading to major declines and a subsequent drop in the global market capitalization.
This drop coincided with the release of the latest Consumer Price Index (CPI) report and followed a sustained upward trend that saw Bitcoin and other cryptocurrencies reach new yearly highs. Notably, the CPI report, released on November 14, indicated that inflation in the U.S. had cooled down to 3.2%, the lowest figure of the year.
As a result, market participants shifted their focus to the traditional stock market, with a significant amount of capital flowing out of the cryptocurrency scene and into stocks. Furthermore, the global cryptocurrency trade volume dropped below the $50 billion mark due to investor apathy. The recent resurgence in the market suggests the return of bullish trends.
Read more: Despite the crash, cryptocurrencies have been the best-performing asset of 2023.
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