Crypto market is up $1 trillion again on good “bad” news as bull rally may be in play
Bitcoin and Ethereum, the two biggest cryptocurrencies, surged today due to poor US unemployment reports. Also, the total crypto market capitalization has once again reached the most significant $1 trillion mark.
Despite rising unemployment, the price of BTC increased by almost 5%, while the price of ETH soared by 8.5%. It would seem that with a worsening economy, one would expect the two major assets of the riskiest financial market to decline, but investors have once again witnessed the paradox of good “bad” news.
According to the well-established narrative, the positive was driven by the belief that for the US Fed, rising unemployment could be an argument for revising its harsher monetary policy and slowing the pace of Fed rate hikes. That said, a bearish trend exists as regulators’ attention turns to the height of rate hikes, which follows Fed Chief Jerome Powell’s speech yesterday.
Crypto market’s traditional ties
It seems to be a waste of time to regret that the crypto market has become tied to traditional finance, as the trend towards its institutionalization continues. Thus, according to the latest financial results report from the leading U.S. cryptocurrency exchange, Coinbase, 83.6% of the exchange’s total trading volume was accounted for by institutional investors, despite a $58 billion drop.
Coming back to the topic of bitcoin and ethereum, it is also important to note that the altcoin, after exactly one year, was able to overtake the main coin of the market again in terms of trading volume on Coinbase.
