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The crypto market is witnessing a massive influx of funds as investors and traders rush to buy cryptocurrencies amid a bullish frenzy.
According to crypto analyst Ali, around $48.54 billion is flowing into the crypto market, the highest capital inflow since October 2021.
Ali uploaded a Glassnode chart showing the "aggregate market realized value net position change" to back up this assertion. On March 2, positive 30-day capital inflows in USD totaled $48.541 billion. Bitcoin and Ethereum's net position change in USD is $43.57 billion. The graph from the chart shows that the market hovers near these figures at the moment.
Around $48.54 billion are flowing into the #crypto market, the highest capital inflow since October 2021! pic.twitter.com/bOhwK4RzYA
— Ali (@ali_charts) March 3, 2024
Bitcoin (BTC), the largest cryptocurrency by market cap, broke through the $65,000 resistance mark during today's trading session.
The leading cryptocurrency gained for the second day in a row, closing in on its all-time high of about $69,000, boosted by the anticipation of strong demand from exchange-traded funds.
Bitcoin reached $65,614 — its highest level since November 2021 — and has risen 6.14% in the last 24 hours to $65,407.
At the heart of this frenzy for Bitcoin is seemingly insatiable demand from U.S.-listed Bitcoin ETFs, which began trading on Jan. 11. Bitcoin has gained over 186% in the last 12 months.
Since the launch of U.S. Bitcoin ETFs, some of the biggest names, including BlackRock Inc. and Fidelity Investments, have invested a net of $7.35 billion.
Small-cap tokens, or altcoins, skyrocketed in response to Bitcoin's rally. At press time, Dogecoin had increased by roughly 27% and Shiba Inu by 34% in the previous 24 hours. PEPE, a frog-themed cryptocurrency, increased by 66% during the same period, while BONK, Fantom (FTM), FLOKI and Dogwifhat (WIF) increased by 58%, 27%, 34% and 16%, respectively.
This is reminiscent of the 2021 bull run, with retail traders attempting to profit quickly from soaring prices in highly volatile tokens. As of press time, the global cryptocurrency market capitalization was $2.43 trillion.