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 $70,615.39 Mezo Wrapped BTC -0.59% Market capitalization $39.35 million VOL. 24 hours $1 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 $2,163.41 Bridged Ether (StarkGate) -2.03% Market capitalization $41.06 million VOL. 24 hours $0.58 billion remained relatively stable at $ 4317, while XRP XRP $1.32 XRP -2.40% Market capitalization $81.25 billion VOL. 24 hours $0.14 billion gained 3.09% to $ 2.85 and Dogecoin DOGE $0.09 Binance-Peg Dogecoin -2.28% Market capitalization $0.23 billion VOL. 24 hours $58.91 million rose 1.67% to $ 0.2142. Solana SOL $81.56 Binance-Peg SOL -1.59% Market capitalization $89.66 million VOL. 24 hours $0.18 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.