The crypto market has risen in lockstep with Bitcoin to new highs amid reports of a large blockchain firm purchasing the number one crypto asset for billions of dollars.
Bitcoin’s price soared above $47,000 this morning, a level not seen since the beginning of the year, triggering a larger recovery and a 5.4 percent increase in the whole capitalization of the crypto markets, or $100 billion, in the last 24 hours.
After a two-week period of stagnation, major cryptocurrencies showed signs of life. Solana’s SOL token soared as much as 10 percent, while Shiba Inu’s SHIB and Polkadot’s DOT tokens also saw rises. Data showed that SOL hit a monthly high of $110, while SHIB was close to hitting a monthly high of $0.00002788.
The market was also affected by the volatility, with nearly $480 million in liquidations in the last 24 hours.
Since the beginning of the year, all markets, including the majority of cryptocurrencies, have been declining as traders react to geopolitical concerns posed by the Russia-Ukraine conflict and the possibility of financial tightening in the United States.
The ongoing crisis in Ukraine’s worldwide economic consequences weighed heavily on the world’s financial markets on February 24, resulting in another day of seesaw price volatility for Bitcoin and the broader cryptocurrency market.
With the latest trend reversal, the crypto market cap has gained almost $600 billion from the meltdown on February 24, all of the bad emotion and price decrease appears to be negated today. In fact, Bitcoin has increased by 35% since the invasion, indicating that it is acting as an inflation hedge.
The run to $44,000 was spurred by news circulating on social media that Russia may soon use Bitcoin as a means of payment for energy exports.
Terraform Labs (TFL) revealed plans to amass a staggering $10 billion in Bitcoin (BTC) to contribute to the project’s stablecoin reserves, and has also been a driving force behind this surge.
The number of currencies held on centralized exchanges has plummeted to 2,506,635 BTC, according to Glassnode data, the lowest since September 2018. In less than a week, over 7,000 coins have left exchanges, providing strong signals to the market.
Bitcoin’s bullish outlook is expected to continue for the foreseeable future, as Whales continue to buy more and more off exchanges and illiquid supply rises. BTC is currently trading at roughly $47,514 as of this writing.