Cautious optimism spreads across the community as the crypto market cap value crosses the $1 trillion mark again. A strong crypto rally saw the top two market cap cryptocurrencies, Bitcoin and Ethereum, drive prices up on Monday. Bitcoin climbed 5% past $22,000 while Ethereum was up by 8.94%, closing the day at $1,466.
Crypto investors and enthusiasts rejoice at the news as the cryptocurrency market has not experienced many rallies over the past several months. The bearish crypto market that we’ve been experiencing wiped out roughly $2 trillion in crypto market value and pushed a number of firms into bankruptcy.
According to analysts, there are strong signals indicating that this may be only the beginning of a bigger bull run. The Ethereum coin is up by 25% since Friday’s market close, and 45% since the shakeout it experienced on July 13th. Some analysts are projecting that the cryptocurrency will continue to rise as technicals point to a bullish engulfing on the charts. They suspect that if the bears don't manage to put an end to the bullish run at these price levels, it will kick off a further rally towards $1,850. Bitcoin’s gains on Monday represent the highest level since mid June, with a 3.6% gain in the last 24 hours and a 9% gain over the past seven days.
Similar developments can be seen with other cryptocurrencies:
(SOL) Solana increased by 25% since the weekend, currently trading at $41. (AVAX) Avalanche is currently trading at $22 but potentially setting sights on $30. (LUNA) Luna (which crashed to $0 earlier in the year) is showing a 53% rally. (DOT) Polkadot has recorded a significant rise on Monday.
Monday’s crypto surge also propelled crypto stocks like Coinbase and MicroStrategy, both of which gained 13% and 10% respectively. Investor sentiment has a tendency of following prices, so if this rally manages to hold what it has kicked off, it’s got the potential to trigger a market reversal and drive a recovery in the crypto sector.
It should be noted here that it wasn't only the cryptocurrency market that enjoyed gains recently. Asian stock markets also rallied on Monday. The Shanghai Composite Index rose 1.55% while the Hang Seng Index gained 2.7% or 548.46 points. However, today’s price movements paint a different picture, with Hang Seng shedding as much as 1.4%. China’s economy is struggling to get back on its feet as the country continues to struggle with COVID-19, with over 40 cities being in complete lockdown or under very strict measures.
US futures started Monday’s trading session on a positive note, but lost a big chunk of their gains by the end of the trading day. Nonetheless, today morning the DowJones futures are up by 0.13%, Nasdaq 100 futures climbed by 0.12%, and the S&P futures rose 0.21%. Traders will be keeping an eye out on the earnings reports that continue to flow this week. This week we’re expecting to see the reports of Johnson & Johnson, Netflix, Tesla, United Airlines, Twitter, Snap, and many more.
Traders will also be monitoring the crypto markets intensely now, to see if the bulls will be able to maintain their positions. If they are successful, the crypto sector could recover to its former glory. Of course, for some cryptocurrencies it will be harder than others. Bitcoin is the leading cryptocurrency in market value but it's still a long way from $22K to $68K.
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