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The cryptocurrency markets have seen a massive influx of investment in the past 24 hours, with over $28 billion being pumped into the markets. This has led to a significant increase in prices across the board, with many of the top cryptocurrencies experiencing substantial gains as a result.
The market is undergoing buying pressure, with the global crypto sector capitalization standing at $853.57 billion by publication time on January 9. Over the last 24 hours, the market has increased an additional $28.71 billion from the $824.86 billion recorded on January 8.
The sudden influx of investment has been attributed to the bulls pushing prices higher, with many investors taking advantage of the current market conditions to buy in at a lower price.
As things stand, Bitcoin is leading the market dominance at 39%, followed by Ethereum at 19%. Notably, although the market has rallied, the focus is on reclaiming the $1 trillion capitalization recorded towards the end of 2022.
The strong buying pressure has led to a sharp increase in prices, with many of the top cryptocurrencies seeing gains of over 10%.
The sudden influx of investment has also led to an increase in trading volume, with many investors looking to take advantage of the current market conditions.
Why is the crypto market is rallying?
The ongoing crypto market gains are mainly attributed to the positive macroeconomic factors that hint at a slowdown in inflation and, consequently, influence the Federal Reserve monetary policy. Notably, the current momentum emerged following the positive jobs data for December 2022.
The sudden influx of investment has led to speculation that this is the start of a new bull run for the cryptocurrency markets. Many analysts believe that the current market conditions are favorable for continued growth and that the prices of many of the top cryptocurrencies could continue to rise in the coming weeks and months.
While it's still uncertain if this is the start of a new bull run, the current market conditions are favorable for continued growth and investors should be cautious with their decision-making.