Why Crypto Market is Up Today: Bitcoin and Altcoins Rally on Inflation Data (2024)

FAQs

Why is the crypto market going up? ›

The crypto market is up today, reflecting investors' optimism for eventual interest rate cuts and the DXY's short-term weakness. The cryptocurrency market is up today, with the total market capitalization rising by approximately 1% in the last 24 hours to reach $2.13 trillion on Aug.

Bitcoin's price rise today follows massive liquidations of short positions in the crypto futures market. Notably, the broader market witnessed over $114.40 million in short liquidations in the past 24 hours, compared to $96.96 million in long liquidations.

Bitcoin is not issued by a central bank or backed by a government; therefore, the monetary policy tools, inflation rates, and economic growth measurements that typically influence the value of a currency do not apply to Bitcoin.

Cryptocurrency Prices Today By Market Cap

The global cryptocurrency market cap today is $2.12 Trillion, a -1.31% change in the last 24 hours.

One of the primary reasons for the rise in the price of Ethereum is the surging popularity of DeFi (Decentralized Finance). Ethereum hosts a lot of DeFi projects on its blockchain network with most of the activities including DeFi happening on it.

DOGE price is up today, fueled by solid US jobs data, whale accumulation and other bullish catalysts.

The recent surge in cryptocurrency prices, coupled with positive developments such as the approval of Bitcoin Spot Exchange Traded Funds (ETFs) by regulatory authorities, has fueled expectations for further gains. Additionally, anticipation is building around the upcoming Bitcoin Halving event scheduled for April 2024.

A high inflation rate for fiat currencies might lead individuals to invest more in digital money because the dollars or Euros they placed in a savings account are actually losing value over time. Bitcoin and certain other cryptocurrencies like Ethereum offer investors an alternative.

Experts suspect that the higher the CPI, the higher the pressure on cryptocurrencies. If the CPI increases and decreases at a significant and quick rate, it's a sign of volatility in the crypto market. We can compare the value of cryptocurrency, like Bitcoin, to the US CPI.

So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.

Which crypto will boom in 2024? ›

But the longer-term stagnation has been caused by macro economic and political uncertainties, he says. Bitcoin been hovering near the lower end of its range as market participants are “still pondering” where the next price catalyst will come from.

While the trend in the first few months remained largely bullish, the bearish interference squashed the bullish possibility. Regardless of this, the Bitcoin price is believed to revamp a strong ascenidng trend in Q4 and rise again in 2024.

In summary, the future of crypto in the next 5 years looks bright. We expect increased adoption rates, especially from the retail client space. Technical innovation will also play its role, including interoperability solutions, DeFi, and the tokenization of real-world assets.

Investments in cryptocurrency can generate profits. The market has extended immensely over the past decade. There is a limited history of the price activity of the cryptocurrency markets; so far, they appear unrelated to other markets like stocks or bonds.