Is the Crypto Market Surge Indicating The Bull Run Beginning?

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As a seasoned financial analyst with over a decade of experience in the stock market and the past five years delving into the crypto space, I’ve witnessed my fair share of market volatility and trends. The recent crypto market slump that saw the global market cap drop to $1.97 trillion and Bitcoin struggling at $53K was a stark reminder of the risks involved in this asset class. However, the quick recovery to a $2.39 Trillion market cap with a trading volume of $89.02 Billion has brought a renewed sense of optimism.

The crypto market has bounced back from its previous downturn, during which the total market value dipped to $1.97 trillion, and Bitcoin was hovering around $53K. Likewise, other cryptocurrencies were facing similar challenges. However, the market’s recovery to a total value of $2.39 trillion and a trading volume of $89.02 billion has brought about a slightly optimistic outlook.

Since the cryptocurrency market downturn at the start of this month, numerous cryptos have managed to buck the trend and set new all-time highs, including MOG, OM, WHY, among others.

Why Is the Crypto Market Surging Today?

The cryptocurrency market is experiencing a notable rise today, as evidenced by the substantial increase in the values of major cryptocurrencies like Bitcoin and Ethereum. Bitcoin has reached a price point of $64,600, while Ethereum is now worth $3,400. The upward trend extends to most other cryptocurrencies as well, evident from their green colors on the market heatmap, signifying new gains.

Is the Crypto Market Surge Indicating The Bull Run Beginning?

To put it another way, the investor sentiment has shifted towards greater enthusiasm or greed recently, with the score rising from 40 to 58 over the past few days. This trend hasn’t emerged randomly; rather, several key influences have driven the cryptocurrency market into a bullish phase.

Donald Trump Supports Crypto Market

Following the US Presidential election recognition, Donald Trump, the former president and current political candidate, has piqued his attention towards cryptocurrency community members. He has been vocal in expressing his support for this industry and is set to attend the largest crypto event, the Blockchain Conference 2024, to discuss regulatory matters related to cryptocurrencies.

In the earlier part of the year, he referred to himself as the “Crypto Champion” and more recently pledged to make Crypto a domestic production. The most tangible demonstration of his backing is evident through Donald Trump’s selection of JD Vance as his running mate – a well-known crypto advocate who holds approximately $250,000 in Bitcoin.

Trump’s involvement in the NFT (Non-Fungible Token) world makes his recent interest in the crypto (Cryptocurrency) industry a natural progression for some, while others view it as a change in stance.

Bitcoin Sentiments Turn Greedy

By mid-July, Bitcoin sentiment shifted dramatically towards intense fear due to heavy selling following the crypto market downturn. Contrastingly, current feelings among Bitcoin users are marked by greed, leading to a significant price rise.

Is the Crypto Market Surge Indicating The Bull Run Beginning?

Recent shifts in user sentiment suggest that investors are growing more confident in Bitcoin due to substantial inflows into Bitcoin ETFs. According to Spontonchain data, these inflows have been steady for the past eight days, with a significant $423 Million injection on July 16 – the largest since May. This consistent investment has fueled optimism among users regarding this digital asset.

Moreover, the Blackrock CEO, in a recent interview, said that,

Bitcoin functions as a valid financial asset, providing diversified returns that aren’t correlated with traditional markets. It’s often referred to as “digital gold” due to its scarcity and resistance to inflation.

I have come to the belief that Bitcoin holds value, and I’d like to share my reasoning behind this shift in perspective. Previously, I harbored doubts about this digital currency, but after conducting thorough research, my skepticism gave way to recognition of its worth.

Ethereum ETF Approval

Following Bitcoin ETF’s approval, there was significant interest in the Ethereum Spot ETF due to the SEC’s previous rejection of Ethereum’s status as a non-security. However, despite these hurdles and the SEC’s classification of Ethereum as a security, trading for the Ethereum ETF is set to commence next week on July 23.

The crypto market as a whole has been notably influenced by it. now, with the upcoming crypto ETFs, both companies and investors are gearing up. Analysts have reported substantial inflows for the Ethereum ETF, outpacing Bitcoin’s, adding an intriguing dimension to this development.

Has The Bull Run Begun?

The crypto market isn’t fully optimistic just yet, but it’s getting there with a growing preference for price increases. Notably, recent reports show a substantial influx of funds totaling $1.44 billion into the market last week. Among the major cryptocurrencies, Bitcoin attracted the lion’s share with an astounding $1.35 billion, while Ethereum accounted for $72 million. This trend suggests an early sign of a bull run.

The Bitcoin halving in April is the cause of the ongoing bull market. Historically, this stage of the market, which we’re currently in, is referred to as the “pre-bull run zone.” During this phase, the market tends to consolidate, or gather strength, before continuing its bullish trend.

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2024-07-17 20:08