Crypto Markets Slightly Rally Tuesday, with Bitcoin and Ethereum Soaring
A day after Independence Day, bitcoin (BTC), the largest cryptocurrency by market capitalization, is up 5% over the past 24 hours to trade around $20,107 at the time of writing, according to CoinMarketCap.
The second-largest cryptocurrency, ethereum (ETH), is up 9 percent in the past 24 hours and is changing hands around $1,148.
The global cryptocurrency market cap rose 5.3 percent to $910.9 billion in the past 24 hours, according to CoinMarketCap.
Other top cryptocurrencies, including Binance Coin (6.6%), Solana (7.8%), Polygon (14%), and Avalanche (5.26%), also posted huge gains over the past 24 hours.
However, the recent gains were not enough to offset losses from the recent cryptocurrency market crash.
Bitcoin is still down 70% from its all-time high of $68,789.63 set in November 2021; Ethereum has also fallen 76% from its all-time high of $4,891.70.
According to Coinglass, more than $170 million in funds were liquidated in the cryptocurrency market in the past 24 hours.
During the same period, Ethereum led liquidations with $69 million, followed by Bitcoin with $45 million, and Solana with $10 million.
Most of the liquidation in these three assets was due to a large increase in short positions.
The cryptocurrency turned bearish after the Federal Reserve announced a 75 basis point rate hike last month to rein in growing inflation. The Fed meets again on July 26, and many expect the Fed to raise rates by another 75 basis points.
What is driving Bitcoin and Ethereum up?
The main reason behind today’s bullish price action is improving on-chain user activity and a healthy change in Ethereum’s overall Total Value Locked (TVL).
According to data from Glassnode, Bitcoin seems to drive away "market tourists", leaving only so-called hodlers. These market visitors may have contributed to the recent decline in Bitcoin.
However, the Federal Reserve meeting at the end of this month will test the Bitcoin holder group again.
After a sharp drop in May 2022, the number of addresses with non-zero balances on the Bitcoin network has also risen. Currently, there are nearly 42.344 million Bitcoin addresses with non-zero balances, an all-time high for this metric.
As for Ethereum, DefiLlama said that the TVL of Ethereum has increased by 4.47% in the past 24 hours.
Trading volume on decentralized exchanges (DEXs) also jumped 76% to $1.73 billion in the past 24 hours, according to Dune Analytics.
NFT sales have also risen, up 0.48% to $12.9 million in the past 24 hours, according to Cryptoslam.
However, sales of Ethereum-based NFTs have fallen by 1% over the past 24 hours. But Solana’s NFT sales increased by 8.19% over the same period.
Outside of the cryptocurrency market, global stock markets are trending higher during today's trading hours.
Singapore's SGX NIFTY index rose 1.07%, Japan's Nikkei 225 index rose 1.03%, India's SENSEX index rose 1.05%, and South Korea's KOPSI index rose 1.8%.
Yesterday, European stock markets closed higher, with the FTSE up 0.89% and the CAC up 0.4%.
The Nasdaq was also up 0.9% today and the Dow Jones Industrial Average (DJI) was also up 1.05% before the open. The S&P 500 was up 1.06% before the open.
This article is compiled from: