The broader crypto market has signaled bullish sentiment, similar to gold and silver, which hit their new all-time highs on Monday. The total crypto market capitalization rose nearly 2% to hover around $4.05 trillion during the mid-North American trading session.
The price of Bitcoin (BTC) was trading around $115,916 at the time of writing, having recovered from last Friday’s low of around $109,883 following the historic deleveraging. The price of Ethereum (ETH) rose by over 3%, reaching a high in the range of around $4,283.
Top Reasons Why the Crypto Market Gained Today
Short squeeze impact
After a heavy liquidation of long traders last week, the crypto market has seen increased buy-the-dip orders, fueling the liquidation of short traders. According to market data from MintGlassA total of $650 million was liquidated in the past 24 hours, with the majority involving short traders.
High demand from institutional investors for crypto assets
On Monday, China Renaissance Holdings announced plans to buy $600 million worth of BNB coins. Citigroup bank announced plans to launch its crypto asset custody services by 2026.
Earlier on Monday, on-chain data analysis revealed that BitMine acquired more than 200,000 Ethereum last week despite crypto volatility.
Macroeconomic security
On Monday, US President Donald Trump visited several countries in the Middle East to conclude lasting peace agreements. Meanwhile, President Trump indicated that his upcoming meeting with Chinese President Xi has not been canceled, giving traders confidence in an impending trade deal between the two countries.
What’s next?
The crypto market is still reeling from fears of future medium-term capitulation following last week’s heavy deleveraging that wiped out $20 billion. However, popular crypto analyst Benjamin Cowen has done just that predicted that Ethereum price is now heading towards its new ATH with a minimum medium-term target of $5,300.
With crypto traders expecting even more Fed rate cuts in the coming months, the crypto market is well positioned to rise exponentially. Furthermore, on-chain data analysis shows that US spot BTC ETFs have accumulated more coins in the recent past.
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