Experts name key reasons for the growth of the crypto market

On Tuesday, September 2, leading cryptocurrencies showed growth amid a return of market greed and new large institutional investments.

Thus, Bitcoin BTC $121,115.00 Mezo Wrapped BTC 0.21% Market capitalization $42.09 million VOL. 24 hours $2.21 billion rose by 1.66% to $ 111,119, reaching an intraday high of $ 111,782. The price was positively influenced by Strategy Inc.'s announcement that it would buy BTC for $ 450 million, as well as $ 260 million in inflows into bitcoin ETFs as of September 2.

Ethereum ETH $4,711.03 Bridged Ether (StarkGate) 2.84% Market capitalization $0.11 billion VOL. 24 hours $2.17 billion remained relatively stable at $ 4317, while XRP XRP $2.97 XRP -0.85% Market capitalization $178.03 billion VOL. 24 hours $0.38 billion gained 3.09% to $ 2.85 and Dogecoin DOGE $0.26 Binance-Peg Dogecoin 0.55% Market capitalization $0.66 billion VOL. 24 hours $0.44 billion rose 1.67% to $ 0.2142. Solana SOL $229.72 Binance-Peg SOL -1.69% Market capitalization $0.25 billion VOL. 24 hours $0.75 billion showed the largest growth, adding almost 6% to reach $ 211.5. The total capitalization of the crypto market increased to $ 3.82 trillion (1.34% per day).

The Fear and Greed Index for cryptocurrencies has moved from «neutral» to «greed». Over the past 24 hours, more than $ 267 million was liquidated from the market, mostly by short traders, while open positions on Bitcoin on Binance were more than 60% long.

Amid the growth of cryptocurrencies, US stock indices declined: Dow Jones lost 0.55%, S&P 500 — 0.69%, and Nasdaq — 0.82%. This was due to a rise in the yield of 10-year government bonds to 4.27% and 30-year bonds to over 4.9%.

CryptoQuant analysts note that the current drop in bitcoin from its highs of 12% is a typical correction within a bull market. Historically, they have ranged from 20% to 25%. According to them, such movements help reduce excessive leverage and cool the market. Renowned trader Michael van de Poppe believes that the correction could end soon if BTC breaks through $ 112,000 ahead of the September 17 Fed meeting.