Total cryptocurrency market cap jumps 7%

The cryptocurrency market has witnessed its largest short liquidations in over a year

A series of crypto tokens rest on top of a computer keyboard                                 
The price of Toncoin (TON) jumped 17% on Wednesday – Photo: Shutterstock

The cryptocurrency market experienced a substantial bullish surge on Wednesday, buoyed in part by the prospect of the US Federal Reserve possibly ending its policy of raising interest rates. 

The hope of an end to the Fed’s hawkish stance buoyed general market sentiment on Tuesday, with the Dow Jones, S&P 500 and Nasdaq closing 1%, 1.6% and 2.2% higher, respectively. 

The capitalisation of the total cryptocurrency market stood 7% higher by noon on Wednesday at $997bn (£862bn), according to CoinMarketCap

Although this partly reflected the volatile nature of the cryptocurrency market, it partly demonstrated the extent to which crypto investor sentiment is influenced by the attitude of central bankers. 

The decision by central banks around the world this year to tackle runaway inflation through interest hikes triggered a cycling out of more speculative investments. As a result, $2trn was wiped off the value of the cryptocurrency market. 

Toncoin enjoys largest 24-hour gains

With the market more buoyant, the crypto market experienced more than $700m in liquidations on short trades. The largest liquidation since July 2021 may have helped to push crypto prices higher.

Bitcoin (BTC), the world’s largest cryptocurrency, rose by 6.8% to $20,636, its highest level since mid-September. 

Ethereum (ETH) stood 13.6% higher at $1,531, a five-week high. The world’s second-largest cryptocurrency’s market capitalisation has risen by $30bn in the past seven days to $188bn. 

Among the other prominent cryptocurrencies, Dogecoin (DOGE), Cardano (ADA) and Solana (SOL) enjoyed some of the largest gains, rising by 13%, 12.6% and 11.3%, respectively.

Toncoin (TON) experienced the largest gain, jumping by 17.4%.

Toncoin – a Layer 1 blockchain that compares itself with Solana and Ethereum –  was once linked with the Russian messaging app Telegram. In addition to a more buoyant crypto market, the crypto was bolstered by Telegram’s rival messaging app, WhatsApp, experiencing brief disruption issues. 

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