After remaining largely consolidated for the better part of 2023, the cryptocurrency market is experiencing a renewed rally inspired by various factors.
Following a minor correction after the late October rally, the market is again witnessing an inflow of capital, with Bitcoin (BTC) taking the lead.
In particular, as of press time on November 2, the crypto market capitalization stood at $1.31 trillion, representing an increase of about $40 billion in November, up from the $1.27 trillion recorded on November 1, according to data from CoinMarketCap.
Cryptocurrency market cap chart. Source: CoinMarketCap
This recent influx of capital reinforces the sector, helping it maintain its cap above the psychologically important $1 trillion level. This capitalization is considered a key signal of maturity and a potential catalyst for institutional capital flow.
Bitcoin takes the lead
Indeed, the capital inflow has been driven by select cryptocurrencies, led by Bitcoin, striving to maintain its price above the $35,000 support zone. As of press time, Bitcoin commanded a market capitalization of $687.93 billion, indicating an inflow of $12.72 billion in the last 24 hours.
Bitcoin seven-day market cap chart. Source: CoinMarketCap.
In addition to Bitcoin, other crypto assets experiencing a surge in buying pressure include the stablecoin Tether (USDT). As reported by Finbold, USDT’s market cap is on the rise as fiat currency continues to flow into the crypto sector, with the token serving as the primary fiat gateway to cryptocurrencies.
Solana (SOL) has also witnessed a surge in buying pressure, with the cryptocurrency gaining as much as 35% in a week.
Sustaining the current rally
By all measures, Bitcoin is currently dictating the trajectory of the cryptocurrency market. Notably, the ongoing rally was primarily triggered by news regarding the potential approval of a spot Exchange-Traded Fund (ETF), likely to attract institutional investors.
Additionally, amidst ongoing geopolitical tensions, Bitcoin is emerging as an attractive option for investors seeking possible assets viewed as stores of wealth, apart from traditional products like gold.
Despite the recent surge in price, there are still many questions about Bitcoin’s prospects. Some experts believe that the current bull run is unsustainable and that a correction is imminent. Others believe that Bitcoin’s next all-time high is on the horizon, noting that Bitcoin is supported by several positive developments such as ETF news and the upcoming halving event.
In the meantime, analysts suggest that Bitcoin has already recorded a rare breakout indicator, pointing to a possible historical rally.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
