Bitcoin scales $57,000; crypto mcap tops $2 trillion; why crypto spring has arrived early?

Crypto tokens saw a strong rally in the last 24 hours as the total crypto market capitalization surged about 8 per cent to top the $2 trillion mark. The rise in the total market valuations of the digital token market was supported by the rise in Bitcoin, the largest crypto token, which rose about 11 per cent to the $57,000 mark. The total market valuation at Bitcoin raced past $1.1 trillion-level, contributing more than half of the entire crypto market capitalization. Bitcoin, which was current around $56,500 mark as of Tuesday afternoon in India, is 18 per cent away from its all-time high of $68,789.63 hit on November 10, 2021. Crypto experts believe that the recent rally in the crypto market is mostly fueled by the approval for Bitcoin ETFs in the US, which has opened the door for institutional money to flow into the digital asset class. Furthermore, the forthcoming Bitcoin halving is also pushing the demand for the largest crypto asset. Crypto Spring has arrived early believes Parth Chaturvedi, Investments Lead at CoinSwitch Ventures. The spot ETF approval for Bitcoin is the primary reason for the current surge in BTC prices. The spot ETFs have brought in a wave of institutional capital into the asset class and strong inflows are seen, he said According to coinmarketcap, the total crypto market volume over the last 24 hours stood at $111.13 billion, registering a rise of more than 108 per cent during the period. Bitcoin’s dominance was around 52 per cent, an increase of 1.21 per cent over the day. "Coupled with this demand surge, is the upcoming supply shock, in terms of the BTC halving which is scheduled to happen in April 2024. With daily BTC generation set to fall from 900 to 450 and constant demand of over 3k BTC by the new ETFs, the imbalance will result in price appreciation," Chaturvedi added. Bitcoin hovered above the $57,000 in the past 24 hours after consolidating in a tight range for the past few days. BTC crossed the $54,000 barrier for the first time since November 2021 due to continued demand from the spot Bitcoin ETFs, said Edul Patel, CEO at Mudrex. "Overall, there is a positive sentiment as bitcoin halving approaches. Additionally, MicroStrategy also acquired an additional 3,000 BTC for $155 million also added to the positive sentiment in the market. The next resistance lies at the $57,400 level and the $60,000," he added. The rise in the Bitcoin prices also pushed other crypto tokens higher. Among the top tired crypto tokens, Ethereum rose 6 per cent, while Solana advanced 9 per cent, while Solana and Avalanche gained over 7 per cent each. Other altcoins like, Theta Network and Pepe advanced up to 60 per cent each in the last 24-hour period, data from Coinmarketcap suggested. Commenting on Theta Network, WazirX Trade Desk said that Theta is a video streaming network that utilizes blockchain technology. It was introduced in March 2019 and functions as a decentralized network, allowing users to share bandwidth and computing resources with each other on a peer-to-peer (P2P) model. "On the daily time-frame, the THETA/USDT trend has broken out of the descending trendline with a bullish price momentum. The buying volumes suggest that the uptrend is expected to continue into the coming weeks. The next resistance is expected at 1.78 USDT and an immediate support is expected at 1.41 USDT," it added in its note.

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