- The total value of all cryptocurrencies surpassed its last peak in November 2021.
- The rise in the price of Bitcoin is one of the main drivers of the rise.
- “The bull market is back,” says a Nexo analyst.
The total value of all cryptocurrencies has reached a new all-time high.
The market climbed nearly 8% to a peak of around $3.12 trillion, according to CoinGecko data.
This surpasses the last market peak in November 2021, when the total value of all cryptocurrencies reached almost $3.07 trillion.
The crypto rally follows a Republican sweep in the US election.
Donald Trump, who calls himself the “crypto president,” has won back the White House, the Senate has returned to the Republican Party and the House of Representatives appears set to remain under Republican control.
Since polls closed last week, the S&P 500 has gained nearly 4%.
“What we’ve just seen is the traditional financial market waking up all of a sudden,” said Tom Dunleavy, a partner at MV Global who leads the crypto investment firm’s asset strategy. DL News.
The price of Bitcoin has climbed 25% over the past seven days to exceed $86,000. And the price of Ether has climbed further, jumping 33% to now just under $3,260.
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“The bull market is back,” said Iliya Kalchev, an analyst for crypto lender and exchange Nexo. DL News.
Institutional interest
Kalchev attributed the recent tear in the crypto market in part to the influx of institutional investments.
Bitcoin spot exchange-traded funds in the United States have seen inflows of $3.1 billion since November 6, according to SoSo Value.
“As we move closer to $100,000, the market is likely to see increasing interest from retail and institutional investors,” Kalchev added, referring to the price of Bitcoin.
In November 2021, at the last all-time market high, the total value of Bitcoin represented approximately 40% of the total crypto market value, according to CoinGecko.
Today, this represents more than 50%.
“Unlike the bull markets of 2017 and 2021, it is Bitcoin that is leading the way,” said Shunyet Jan, head of derivatives and institutional products at crypto exchange Bybit. DL News.
FOMO
But Kalchev said that while it is tempting to attribute the rise of the crypto market solely to Bitcoin, he said he believes it is a consequence of the post-Trump bump.
“Ultimately, this rally appears to be coming from widespread optimism within the market that has taken hold since the U.S. presidential election,” he said.
And, he added, the record rise of the world’s largest cryptocurrency “could also encourage capital rotation to other major assets, like Ethereum and Solana.”
Petr Kozyakov, co-founder and CEO of Mercuryo, a crypto payments platform, said the driving force is even simpler: the fear of missing out.
“The cryptocurrency market is engulfed in wave after wave of FOMO as Bitcoin appears to chart an inexorable path toward $100,000,” he said. DL News.
Ben Weiss is DL News” Correspondent from Dubai. Do you have any advice? Email him at bweiss@dlnews.com.
