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The crypto market moved higher on Tuesday as investors weighed the latest developments in the US debt ceiling stalemate. Bitcoin (BTC), Ethereum (ETH) along with other top crypto tokens experienced a sudden uptick over the past 24 hours.
The digital asset market has been volatile amid macroeconomic uncertainties, which is guiding the sentiments in the near-term. However, despite unstable market conditions, cryptocurrencies have increased significantly in the past 24 hours.
According to CoinMarketCap, the global crypto market gained nearly 2% to stand at $1.14 trillion ahead of the US President Joe Biden’s discussion on the country’s debt ceiling later in the day. Meanwhile, the total crypto market volume over the last 24 hours jumped 35.69% in the last 24 hours to $30.40 billion.
Bitcoin May Experience Price Surge Shortly
Bitcoin (BTC) was back in green on Tuesday as the largest crypto token jumped about 1.53% in the last 24 hours to regain $27,000-mark. At the time of writing, the largest digital asset is hovering at $27,252. Over the past seven days, BTC bounced 0.12% signalling a bullish momentum. Bitcoin’s dominance also rose 0.02% over the day to 46.43%. In the wake of the recent price rally, market experts anticipate a price surge in the horizon.
On May 23, Glassnode co-founder Yann Allemann took to Twitter to reveal the flagship token might be ready to rally, hihglighting that Bitcoin’s shorts have been exhausted after failing multiple attempts to break below the 200-day simple moving average (SMA), a trendline considered a significant support level.
Furthermore, it seems things are heating up for the Bitcoin (BTC) blockchain. As per data from Glassnode, daily transactions on the BTC network have rocketed to an all-time high of 682,000 this month. It is almost 40% higher than the previous peak in 2017.
#Bitcoin bottom is in
Shorts getting exhausted after failing numerous attempts to break below 200SMA, which is a solid support.
50SMA bullish crossover over 200SMA, it's a matter of when #BTC goes off https://t.co/pfyjsmCGyE pic.twitter.com/ZmKVQiQwYz
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) May 22, 2023
It is likely the spike in activity is due to the new breed of tokens to be built on the bitcoin blockchain “BRC-20”. According to Blockchain.com data, the average daily transactions over seven days stand at more than 531,000, nearly twice as high as a month ago, primarily due to the creation of these tokens. In a statement, Gordon Grant, co-head of trading at Genesis trading said,
“BRC-20 tokens are a phenomenon we haven’t seen before.”
Demand For Ethereum Staking Booms
On the other hand, Ethereum (ETH) was also surging higher, rising about 1.97% to race past $1,850-levels. The second largest digital asset is up 1.37% over the past one week to currently trade at $1,851.
Experts predited the rally might be due to a dramatic increase in demand for staking. As per Glassnode more than 4.4 million coins have been deposited into the staking contract since April 12, taking the tally to a whopping 22.58 million.
Altcoin Market Witness Gains
Similarly, all major altcoins witnessed a substantial upswing. XRP and Solana (SOL) saw a slight increase of 0.02% in the past 24 hours to trade at $0.46 and $19.79, respectively. Meanwhile, Cardano (ADA) and Polygon (MATIC) soared nearly 3% each, over the past 24 hours.
Other digital tokens including Dogecoin (DOGE), Litecoin (LTC), Polkadot (DOT) and Shiba Inu (SHIB) traded with gains in the last 24 hours. Parth Chaturvedi, Investments Lead at CoinSwitch Ventures noted,
“Crypto markets are trading slightly higher in the last 24 hours. The crypto fear and greed index remains in the neutral zone with 50 points, up 1 point. Investor sentiment continues to be cautious in the backdrop of the US debt ceiling discussions.”