Nancy Lubale4 hours agoWhy is the crypto market up today?The crypto market is up today as bears succumb to heavy liquidations and improvements in the stock market boost investor sentiment.389 Total viewsListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe cryptocurrency market is up today, with the total market capitalization rising by approximately 1% in the last 24 hours to reach $2.11 trillion on Aug. 9. The rise in market cap includes gains from Bitcoin (BTC) and Ether (ETH), which have risen around 1.1% and 0.3%, respectively.Crypto market performance June 27. Source: Coin360
Let’s look at the major catalysts driving the crypto market up today.Positive sentiment propels crypto prices higher
The crypto market recovery on Aug. 9 mirrors the strength witnessed in US equities. The US stock market has gained 5% in valuation over the last 24 hours, with the S&P index posting its “best day since November 2022,” according to capital markets commentator The Kobeissi Letter.Source:The Kobeissi Letter
The S&P 500 and Nasdaq hit five-day highs, with the S&P 500 “adding over $1 trillion market cap” on Aug. 8 with a daily ascent of 0.4%, said The Kobeissi Letter, adding’“Markets continue to find relief in the recent comments from the Bank of Japan. The Yen carry trade seems to be alive for now.”
Meanwhile, US Initial Jobless Claims decreased to 235,000 during the week ending July 20, according to the US Department of Labor (DoL) released on July 25. The numbers came in below initial estimates of 240,000 and were lower than the previous weekly gains of 250,000. Additionally, continuing claims increased by 21,649 to 1.96 million during the week that ended Aug. 4.
The market remains wary of the implications the current macroeconomic conditions could have on the Federal Reserve’s monetary policy. While the Federal Open Market Committee (FOMC) is expected to meet on Sept. 18, there are high expectations of the first rate cut since March 2020.
Market participants are expecting one to two interest rate cuts toward the end of the year, in September and November. According to data from CME Group’s FedWatch Tool, the odds of a rate cut coming at the September FOMC meeting are around 100% at the time of writing.Fed target rate probabilities for Sept. 18 FOMC meeting. Source: CME GroupInvestors return to spot Bitcoin ETFs
The crypto market’s ongoing gains align with the resumption of inflows into the US-based spot Bitcoin ETFs. As of Aug. 9, these funds were managing around $54.31 billion worth of BTC, up from $48.43 billion on Aug. 5.
Data from Farside Investors reveals that after three days of back-to-back outflows from these investment products, the spot Bitcoin ETF capital flows turned positive over the past two days, recording net inflows of $45.1 million and $194.6 million on Aug. 8 and Aug. 9, respectively.Spot Bitcoin ETF flows table. Source: Farside Investors
Meanwhile, the Brazil Securities and Exchange Commission DVM Brazil’s Securities and Exchange Commission (CVM) approved the first spot Solana ETF. This signals a broader trend following the approval of spot Bitcoin and Ethereum ETFs by various countries, potentially paving the way for more crypto ETFs around the world.
This development highlights the growing acceptance and adoption of Bitcoin and other cryptocurrencies in the traditional financial sector, helping the crypto market’s valuation rise today.
Related:Tether mints 1.3B USDT since market bottom — Can it push Bitcoin above $65K?$110 million in short liquidations back the move higher
The uptick in the crypto market coincides with accelerated short liquidations across derivatives markets in the last 24 hours.
Data from Coinglass reveals that short traders—those betting on the crypto market’s downside—have witnessed a total of $110.92 million worth of liquidations in the last 24 hours. In comparison, long traders suffered over $76.81 million in liquidations in the same period.
Short Bitcoin liquidations stand at $58.6 million, with the tally increasing at the time of publication.Total crypto liquidations. Source: Coinglass
When short positions are liquidated, traders who bet on prices going down are forced to sell their positions, often at a loss. The resulting increase in buying pressure has driven the crypto market valuation up today.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# PayPal# Cryptocurrencies# Altcoin# Federal Reserve# Dollar# Nasdaq# Bitcoin Price# Volatility# Markets# Stocks# Inflation# Donald Trump# Bitcoin Futures# Futures# S&P 500# FTX# PayPal USDAdd reaction