The crypto market has experienced a sudden surge in value, with Bitcoin’s price climbing near $45K to bring market capitalization back over two trillion dollars.
It’s been a fantastic week for cryptocurrency. Over the past week, Bitcoin’s price has risen 14%, while Ethereum (ETH) gained 12%.
As the market for cryptocurrency continues to grow, it has now raked in over $2 trillion. One of the most popular and successful coins has been Terra’s LUNA, which climbed nearly 70% over the last week.
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Solana’s SOL has appreciated in value this week, gaining 18.5%. Other tokens such as Avalanche’s AVAX and Polkadot’s DOT are also seeing increased appreciation, with Avax rising 16% while the latter growing nearly 13%.
Bitcoin is now the most valuable currency in terms of market capitalization, surpassing Russia’s rapidly deteriorating ruble. Bitcoin’s current price of $45,000 has reached market capitalization at approximately 835 billion U.S. Dollars. Moscow’s competitor commands just 625B USD.
Review by an Analyst on the Crypto Market
According to Marcus Sotiriou, an analyst at UK-based digital asset broker GlobalBlock, with Bitcoin’s big move, it seems that the cryptocurrency has decoupled from stock markets.
Markets have had an extraordinary week. They could soon be separated from stock markets. This would mean that in the short term, at least–with long-term implications still up in the air.
It’s almost like March 2020, the current outlook for crypto markets. However, it feels like we’re in for another significant uptick, with Real Vision CEO Raoul Pal predicting “a lot more collaboration” from within the industry soon enough.
Raoul Pal tweeted When Bitcoin surpassed $44,000
The worst possible news was thrown at it back then (a pandemic, a global shutdown) and it crashed very hard but did not make a new bottom.
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The perfect storm of cryptocurrencies has been created by the Ukraine conflict, high rates and surging crude oil. While the future may be bright with new opportunities emerging from this time of chaos in investors’ eyes – Pal thinks Bitcoin failed to make another low suggests “macro might get more positive.”
But he cautioned that there could be a new crypto crash if this sell-off ends.
The Power of Borderless Currencies
It was evident this week that borderless assets such Bitcoin and Ethereum can be a powerful tool. Many people fled Ukraine and turned to cryptocurrency for financial aid. It is important to remember that DeFi options such as non custodial wallets are crucial during times like this. These wallets allow people without access to formal funds, regardless of their location or the government that may prevent them from receiving traditional assistance.
With Ukraine’s move to ask for crypto donations, the process of adopting this new and exciting asset class is set into motion. You could also say its value has been steadily increasing since.
Featured Image from Pixabay. Chart from TradingView.com