Over the past 24 hours, the cryptocurrency market has experienced remarkable growth, registering an increase of nearly 3%. As of the opening of European markets on Monday morning, the total cryptocurrency market value has risen to $2.91 trillion. After an eight-month consolidation period, the market has entered a strong recovery period, with Bitcoin breaking a new record by reaching $81,900.$BTC
There are multiple factors behind this rally in the crypto market. The first of these is the situation known as the short squeeze. This situation was one of the important factors that triggered the rise in the market. Approximately $624 million worth of liquidations occurred in the crypto market, which led leveraged investors to Bitcoin and altcoins. Such rapid upward movements can cause investors to buy more due to the "fear of missing out" (FOMO), causing prices to reach new highs.
In addition, the interest of institutional investors also made a significant contribution to the market's rise. After gold and major stock indices reached medium-term resistance levels, investors began to turn to the cryptocurrency market to increase their profits. In the last five weeks, $7.2 billion in net inflows were recorded in Bitcoin spot ETFs, while $154 million in weekly inflows were recorded in Ethereum spot ETFs.
Another important development that supported the market over the weekend was the positive political news coming from the US. The fact that crypto-friendly leaders, especially Donald Trump, won the election by a large margin in the 2024 US Presidential Elections created an optimistic atmosphere in the markets. In addition, it is being said that the US will put on the agenda a bill that plans to buy 1 million BTC in the next five years in order to solve the national debt crisis. This possibility increased optimism in the market and reinforced the bullish expectation.
On the other hand, the US Federal Reserve (Fed) and the Bank of England lowering interest rates by a quarter point and China announcing a $1.4 trillion stimulus package to stimulate the economy indicate that global liquidity will increase and the positive atmosphere in the crypto market will continue.
With all these developments, the cryptocurrency market is giving strong signals of growth and attracting the attention of investors. However, considering the volatile structure of the market, it is of great importance for investors to take a cautious approach by evaluating the risks.
