Bitcoin, the most popular cryptocurrency, rose as much as 6% on Thursday as investor confidence increased after U.S. President Donald Trump decided to halt auto import duties for a month.Ethereum saw a 5.5% spike to $2,294 at 10:39 AM IST, while Bitcoin increased 6% to $92,168. Over the last day, the combined value of the world's cryptocurrency market rose 5% to $3 trillion. Cardano, Solana, Dogecoin, and XRP all went up 3.3%, 4.7%, and 3%, respectively, as altcoins also saw gains.
"Bitcoin's wild price movements continue to captivate the crypto world, with dramatic shifts from $81,000 to $89,000 in mere hours. This volatility reflects the market's ongoing dynamism, and what we're seeing is far from typical. "As Bitcoin approaches $90,000, we're seeing some interest, particularly from retail investors," said Avinash Shekhar, Co-Founder and CEO of Pi42.
What's driving the rally?
According to CoinMarketCap, Bitcoin's market capitalization increased to $1.928 trillion, giving it a 60.71 percent market share. Meanwhile, the 24-hour trading volume fell by 14.7% to $50.96 billion. Stablecoins dominated cryptocurrency trading, accounting for 94.15 percent of total volume, which reached $110.66 billion.
"Trump's announcement of a US Crypto Strategic Reserve is a historic move. This reserve, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, which are all fundamentally strong assets, is a positive sign for the industry. These networks have been battle-tested and provide the security, scalability, and innovation that propel the digital economy forward. This reserve not only lends credibility to cryptocurrency, but also sets a precedent for other countries to accelerate regulations and responsibly embrace digital assets," said Raj Karkara, COO of ZebPay.
Several major altcoins, including Tron, Pi Coin, Chainlink, and Hedera, experienced gains of up to 15%, while Stellar, Avalanche, Sui, Litecoin, and Shiba Inu increased by up to 12%.
"The institutional interest appears to be more mixed. ETF flows have been a concern, with only one inflow in the last ten days, while outflows remain a concern. This is a watershed moment for Bitcoin, as it maintains its dominance over altcoins. We're seeing impressive gains across the board, from Chainlink and Cardano to Ethereum and Ripple. The total market capitalization of $3 trillion reflects the growing confidence in the space. These fluctuations are not only temporary, but they demonstrate the resilience and potential of the broader crypto ecosystem as it evolves. As always, it's an exciting time to be in the cryptocurrency space, with opportunities for both risk and reward," Shekhar further stated.
