Experts name the reason for the sharp growth of the cryptocurrency market

On Wednesday evening, the cryptocurrency market experienced a sharp rise: Bitcoin BTC $109,482.78 Bitcoin 0.17% Market capitalization $2.18 trillion VOL. 24 hours $1.81 billion rose to an intraday high of $ 109,763, and at the end of the day was trading at $ 108,832 (3.09%). Ethereum ETH $2,576.69 Bridged Ether (StarkGate) 0.42% Market capitalization $79.09 million VOL. 24 hours $1.63 billion (6.72%, $ 2,571) and Dogecoin(6.21%, $ 0.1680) also recorded significant growth. The market’s rise was fueled by demand from institutional investors, as well as news that BlackRock’s iShares Bitcoin Trust exchange-traded fund has for the first time started generating more fees than the main S&P 500 ETF.

The wave of optimism also spread to altcoins, including Bonk (19.97%), Celestia (17.82%), and dogwifhat (16.87%), and the total market capitalization of the crypto market increased by 3.5% per day to $ 3.36 trillion. At the same time, in traditional markets, the S&P 500 and Nasdaq closed at historic highs after the news of the US-Vietnam trade agreement.

Over the past 24 hours, more than $ 250 million of short positions have been liquidated, and open interest in bitcoin has increased by 8.7% to $ 74 billion, indicating an increase in speculative interest. At the same time, more than 68% of Binance traders remain short, despite the rise in price. The Fear and Greed Index rose from 63 to 73, indicating an increase in «greed» among investors.

Analysts at the Santiment blockchain platform warn that active FOMO on social media often precedes short-term market corrections. At the same time, popular crypto trader Ali Martinez believes that the daily closing of bitcoin above $ 109,000 could pave the way for a new breakout to $ 118,000.

According to market participants, the main drivers remain ETFs and institutional demand, as well as the overall growth of stock indices and positive dynamics in international trade.