The crypto market had a rollercoaster week, full of unexpected twists and turns. It began with a dip, causing the market to shrink to $2.19 trillion, as Bitcoin and other altcoins experienced a significant drop in value. However, it all changed for the opposite as the market rebounded with a massive inflow of over $350 billion, catapulting its value to $2.54 trillion, according to CoinMarketCap data.
Bitcoin’s price surge has been impressive. It jumped over 13% from its lowest in the week to break $76,000 and shatter its previous record set in March. Investors and analysts see this uptrend as promising and predict more highs for the pioneer crypto.
What’s Driving the Week’s Market Rally?
This surge is largely attributed to Trump’s pro-Bitcoin stance and proposed policies, such as eliminating taxes on Bitcoin transactions and establishing a strategic BTC reserve. These moves have generated a bullish sentiment in the crypto community, leading to a significant inflow of funds by institutional investors.
The bullish sentiment is further motivated by expectations of favorable regulatory changes that will take the crypto industry into its next growth phase. Investors anticipate a more lenient and clarity-driven approach from regulators during Trump’s tenure as the U.S. president. Most market participants seem optimistic that a pro-crypto regulatory environment will advance the industry.
Further Probe Into the Week
While Bitcoin surged to an all-time high, Ether, the world’s second-largest crypto, also increased by over 20%. Dogecoin, Elon Musk’s favored token, skyrocketed by 42%. The token’s rally is unsurprising, as Elon supported Trump during the election campaigns, and the president-elect acknowledged it during his post-win speech.
Solana has also seen a 25% increase in value this week. Notably, Geoffrey Kendrick, Global Head of Digital Assets Research, predicted that Trump’s economic policies and administration could significantly increase SOL price, outperforming Bitcoin and Ether.
Interestingly, Crypto-related stocks have also surged alongside crypto, outperforming the broader market. Coinbase jumped over 40%, while Robinhood Markets and MicroStrategy increased 26.55% and 7%, respectively.
Meanwhile, at press time, the crypto market capitalization stands at $2.5 trillion, a 2% increase over the last 24 hours. Bitcoin’s dominance is 59%, with Ethereum’s market cap at $342.82 billion.
