Over the past seven days, the prices of major cryptocurrencies have skyrocketed across the board.from Bitcoin ethereum, Doge, Shiba Inu, and nearly all major cryptocurrencies have shown incredible recoveries this week. Global crypto market capitalization rose nearly 8% in his week, reaching $1 trillion for the first time in 45 days.
Specifically, Bitcoin is up nearly 6% while Ethereum is up 17%. Most notably, dogecoin The price has risen by more than 110% over the past seven days, hitting $0.1 for the first time in almost six months.
So what is causing this rise? And will we finally enter the long-awaited bull market?
Bloomberg’s historic crypto magazine
last week, Bloomberg releases 40,000-word magazine It is dedicated to cryptocurrencies, titled “The Crypto Story”. This is his second time in his 93-year history with Bloomberg to publish a full version in a single article. The report provided some key insights and analysis on the crypto industry, focusing on both positive and negative aspects.
The article emphasized that cryptocurrencies have a long way to go when it comes to building credibility, but that is the only way to reject centralized control-oriented financial institutions. Bloomberg author Matt Levine Crypto has been called “trustless and censorship-resistant”. Positive reflections of this kind demonstrate a growing awareness of cryptocurrencies and their true potential across the industry. Statements like this also show that the community is justifiably losing faith in a centralized and opaque financial system.
While the report talks in detail about the risks and downsides of cryptocurrencies, there is strong sentiment in the analysis that cryptocurrencies will become one of the greatest financial tools of the future. The report clearly boosts market sentiment, which is one of the factors behind the current bullish trend.
Elon Musk’s $44 billion acquisition of Twitter
Billionaire and Tesla founder after months of speculation and debate Elon Musk finally buys TwitterBut how does that affect crypto?
Tesla’s CEO has long been a cryptocurrency advocate. Twitter being led by a pro-crypto businessman has had a huge impact on market sentiment. Specifically, it affected the Dogecoin market. Elon Musk is an active proponent of his coin memes.In fact, Tesla’s website DOGE as payment about some of its products.
Musk’s takeover of Twitter is one of the main reasons why DOGE has jumped over 110% over the past week. As liquidation dwindles, more and more people are investing in major meme coins.
the stock market is crashing
Over the past six months, primary stock markets have crashed as inflation led to higher interest rates around the world. The S&P 500 is down 6.8% for him in the last six months as the NASDAQ has fallen more than 60% for him.
Bitcoin’s price also fell during this period, but its volatility was relatively lower than that of major stocks. I never got lower. This is still a significant gap from the price of a year ago, but the volatility is significantly lower than for leading stocks.
Therefore, many investors trust crypto more than the stock market.There was also a significant influx of DeFi A project that provides high-yield staking and borrowing services for various Tier 1 tokens. The outlook for passive income in a bear market is also drawing more people into the market.
Ethereum went into deflation
For the first time since the merger, Ethereum supply deflationary October 8th. This means that more of his ETH than new supply is burned daily through reward staking. As the merger moved Ethereum to his PoS, mining became obsolete and the daily production of new tokens he reduced from 13,000 to 1,600.
It took almost a month for the existing tokens in circulation to be burned up by staking rewards. On October 8, for the first time since the merger, more ETH was burned than was generated. The supply is continuously decreasing every day, which is also pushing up the ETH price on the market.Major altcoin is currently up 17% in seven days.
These are some of the main reasons why the cryptocurrency market has performed well over the past week. So are we in a bull market? We are definitely experiencing a bullish trend. However, whether or not this can officially be called a bull market depends on how long this trend lasts. If the price continues to show resistance and trend upwards into November, it could be a bullish Christmas.