The crypto market made a strong comeback, with a total value that went over $2 trillion. This was triggered by a rise in the prices of Bitcoin (BTC) and Ethereum (ETH). The same happened after positive data about the US job market.
In the past 24 hours, the crypto market has been performing better. It added more than $131 billion to its value and went over $2 trillion for the first time in weeks. Bitcoin and Ethereum have been the most active. Each showed big price gains that showed investors were feeling more confident again.
Bitcoin Surges Past $61,000
Bitcoin, the most valuable cryptocurrency by market cap, staged an amazing comeback on August 8th, rising over 8% in just 24 hours. During this rise, BTC hit a 24-hour high of $62,673.73. This is a big jump from the low of the previous day.
At the time of writing, Bitcoin is trading at around $61,000, with a trading volume exceeding $43 billion according to Coinmarketcap data.
The recovery comes following positive reports about the US job market. This seems to have calmed investors’ worries about an impending recession. On August 5th, data revealed that initial jobless claims fell to 233,000 for the week ending August 3rd. The results defied expectations and signaled a more robust labor market.
This news injected fresh optimism into the market. In turn, leading to a wave of buying that pushed Bitcoin’s market cap back over $1.2 trillion.
Ethereum Eyes $3,000 After 11% Surge
Like Bitcoin, Ethereum’s price has been going up. In the past day, it has gone up almost 11%. The market value of the second-largest cryptocurrency rose to $2,700 after being stuck around $2,500 for most of the previous week. Ethereum’s trading volume also saw a substantial increase, contributing to the overall positive momentum in the market.
The continued accumulation of huge investors, or “whales,” who took advantage of the recent decline to purchase additional ETH, is one factor contributing to the recent surge in Ethereum prices.
On-chain data also shows that Ethereum reserves on exchanges are going down to depths that haven’t been seen in five years. This trend shows that investors are moving their assets into personal wallets, which is a sign of a positive long-term view.
According to Santiment, Ethereum’s social media presence saw a sharp uptick as traders grew increasingly optimistic about the possibility of the cryptocurrency reaching interim targets of $3,000 or $3,500.
Meanwhile, there is growing anticipation among traders that Bitcoin could see a significant price increase, potentially climbing to between $70,000 and $75,000 now that it has surpassed the $61,000 mark.
Short Squeeze Amplifies Crypto Market Recovery
The market’s upward momentum was further fueled by a significant short squeeze, particularly in the crypto futures market.
Over $158 million in short positions were liquidated within 24 hours, compared to $63 million in long positions. This forced short sellers to cover their positions by buying back Bitcoin, which added additional upward pressure on the price.
The short squeeze, combined with the positive economic data, created a perfect storm for the crypto market’s recovery. As investors scrambled to close their short positions, the influx of buy orders propelled Bitcoin and Ethereum higher, solidifying the market’s overall bullish sentiment.
Global Developments Bolster Market Confidence
The broader cryptocurrency market also benefited from favorable global developments. Notably, the recent legalization of bitcoin mining in Russia has bolstered favorable sentiment.
The increasing optimism surrounding digital assets has been bolstered by this new rule, which permits registered businesses and individual miners to engage in mining activities under regulatory supervision.
Analysts are optimistic about the possibility for more gains as the crypto market continues to get better. With Bitcoin and Ethereum leading the way, the market could keep rising over the next few weeks, especially if the outlook for the economy as a whole remains strong.
