Huge Crypto Market Surge Hits
There is massive bullish movement across the cryptocurrency market, and we look at a couple of factors that could be causing it.
The cryptocurrency market is bullish at the moment, with Bitcoin (BTC) gaining more than 5% for the day, and Ethereum (ETH) up by 3.75%. A number of high profile crypto coins have suddenly surged.
There is no clear reason why the crypto market has suddenly turned. Earlier today, Bitcoin was only up by 0.90%, closing in on $60K. Now, it is sitting at $60,800 (BTC/USD) and still climbing fast.
In fact, much of the crypto market is gaining since this afternoon, and there are a couple factors that could be responsible.
New Election Promises
Donald Trump has been speaking about his plans for cryptocurrency for much of the election, talking up his support for the market. It was just Monday night, though, when he was part of an announcement for a new project called World Liberty Financial that really detailed what that project would look like.
This program is meant to open up cryptocurrency and banking opportunities for many Americans who have not had access to banking services for years. The underprivileged and underserved are Trump
Trump‘s target audience for the project, which would expect to roll out sometime after he is elected, if he wins the election.
That could be part of why the crypto market is doing so well, as a project like this would bring in tons of new investors and make cryptocurrency far more mainstream.
Federal Reserve Interest Rate Cuts
The other factor that needs to be considered is the impending interest rate cuts from the US central bank. These will be officially announced on Wednesday, but news is already coming out about how deep the cuts will be.
It looks like the rate cuts might not be as severe as previously anticipated, and if that is so, then the crypto market might not be hurt as much by the cuts. The Fed is likely to keep the cuts very limited and shallow because of the state of the economy and the sticky inflation problem.
Crypto Market Roundup
A number of coins are currently experiencing their biggest gains in a while, like Avalanche (AVAX), which has spiked 3.52%. XRP (XRP) is up 2.52%, and NEAR Protocol (NEAR) is up 10.23%. These figures account for movement in the past 24 hours, but in most cases, the largest gains have happened in the last couple of hours. The upswing can most likely be attributed to better than expected retail sales, which were up 0.1% for the month of August, with core retail sales up 0.3%.
There are gains in the upper levels of the market nearly across the board, with increases ranging from 1-2% for most tokens. We expect that a lot of this will die down shortly and there will be a price correction to flow as the market stabilizes. But until that happens, it looks like the bulls have the reigns of the crypto market.
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