The wider crypto market has signaled bullish sentiment akin to Gold and Silver, which hit their new respective all-time highs on Monday. The total crypto market cap was up nearly 2% to hover about $4.05 trillion during the mid North American trading session.
Bitcoin (BTC) price traded about $115,916 at press time after rebounding from its last Friday’s low of about $109,883, following the historic deleveraging event. Ethereum (ETH) price gained over 3% to reach a range high of about $4,283.
Main Reasons Why the Crypto Market Gained Today
Short Squeeze Impact
After a heavy liquidation of long traders last week, the crypto market has experienced heightened buy-the-dip orders, thus fueling the liquidation of short traders. According to market data from CoinGlass, a total of $650 million was liquidated during the last 24 hours with the majority involving short traders.
High Institutional Investors’ Demand for Crypto Assets
On Monday, China Renaissance Holdings announced plans to purchase $600 million in BNB coins. Citigroup bank announced plans to launch its crypto assets custody services by 2026.
Earlier on Monday, on-chain data analysis revealed BitMine acquired over 200k Ethereum last week despite the crypto volatility.
Macroeconomic Certainty
On Monday, U.S. President Donald Trump visited several countries in the Middle East to establish lasting peace deals. Meanwhile, President Trump signaled that his upcoming meeting with China’s President Xi has not been canceled, thus instilling traders with confidence of an imminent trade deal between the two nations.
What’s Next?
The crypto market is still under the influence of midterm fear of future capitulation after last week’s heavy deleveraging event, which wiped out $20 billion. However, popular crypto analyst Benjamin Cowen has predicted that Ethereum price is now enroute to its new ATH with a minimum midterm target of $5,300.
With crypto traders anticipating more Fed rate cuts in the coming months, the crypto market is well positioned to rally exponentially. Moreover, on-chain data analysis shows the U.S. spot BTC ETFs have been accumulating more coins in the recent past.
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