Cryptocurrency market jumps 3.6% to three-week high

Cardano and Solana surged earlier today following weeks of decline

Bitcoin and Ethereum rose by 2.2% and 5.8% in Monday trading – Photo: Shutterstock

The cryptocurrency market enjoyed substantial bullish trading momentum today, after weeks of decline followed by stagnation. 

Crypto market cap rises to three-week high

As of 16:00 (UTC), the total capitalisation of the cryptocurrency market stood at $856m (£701m), a 24-hour increase of 3.6% and its highest level in more than three weeks. 

Bitcoin (BTC) rose by 2.2% to $17,327, having fallen as low as $16,407 towards the close of 2022. The market capitalisation of the world’s largest cryptocurrency reached $333.5bn, having stood at $800bn 12 months earlier. 

Ethererum (ETH) enjoyed a 5.8% gain to $1,340. The second-largest cryptocurrency in the world had fallen as low as $1,085 in mid-December 2022. Ethereum’s market capitalisation reached $164bn on Monday, having stood at $376bn 12 months earlier. 

Among other prominent crypto projects, Cardano (ADA), Solana (SOL) and Gala (GALA) enjoyed some of the largest gains, rising by 13%, 24% and 76%, respectively. 

Solana’s runaway momentum may have taken some traders and investors by surprise. The coin recently slid to an 18-month low, while the blockchain itself lost several key NFT clients to rivals at the end of last year.

None of the 100 largest cryptocurrencies traded down in the 24 hours to Monday afternoon. 

Uncertainty continues to hang over cryptocurrency market

The reversal in crypto market sentiment could be attributed to a number of different factors. Having declined for the past three weeks in a row, investors may have seen recent lows as a long-term buying opportunity.

Similarly, traders may have been buoyed by reports that, with runaway inflation slowing down, the US Federal Reserve could be set to end its policy of hiking interest rates. 

Monday’s bullish run could prove to be short-lived, however, if the 'Crypto Winter' claims another victim. Last week, Silvergate Capital, a leading bank in the crypto asset space, saw its stock slump by more than 30% and processed a record $8.1bn in withdrawals. 

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