The cryptocurrency market has entered another bull run. Bitcoin (BTC), the market leader, hit an all-time high of $93,477.11 last week. The global cryptocurrency market capitalization has also increased to $3.22 trillion.
The market surge has brought significant returns to investors. According to cryptocurrency analytics firm LookOnChain, one investor turned $33,000 into $12.2 million in just 24 days.
According to the analytics firm, the investor spent 200 Solana (SOL), worth about $33,000, to buy 30.6 million $ai16z tokens 24 days ago. Today, the value of the 30.6 million $ai16z tokens is about $12.2 million. The increase in value translates to about 371x growth.
Will the Cryptocurrency Market Continue to Rise?
The latest market rally may be due to Donald Trump’s victory in the US presidential election. Market participants are betting on Trump’s pro-business and pro-crypto stance. Many believe that the crypto sector will see lenient regulations under the Trump regime.
Another factor that could boost the market is the Federal Reserve cutting interest rates by 25 basis points. Interest rate cuts typically encourage investors to take on more risk. As inflation cools, we could see a steady increase in funds flowing into riskier assets, such as cryptocurrencies.
Donald Trump has been very vocal about his support for the cryptocurrency space. With the potential for loosening of regulations regarding cryptocurrencies, the market could continue to rise in the coming weeks. Cryptocurrencies could start to regain and surpass their previous highs in the coming weeks.
There is also a possibility that investors will start taking profits. In such a scenario, the market may face a correction. How the market will behave in the coming weeks remains to be seen.
