The queen of cryptocurrencies, which exceeded $60,000, pulled the 10 largest cryptocurrencies on the market in its rise.
The rise of bitcoin benefits other cryptocurrencies, while the market has more than 2 million today (according to Coinmarketcap). On Wednesday February 28, bitcoin exceeded $60,000 and continued its progression this Thursday above $63,000. The crypto market now exceeds $2,300 billion in capitalization, a record since December 2021. This Wednesday, bitcoin pulled the 10 most capitalized cryptocurrencies on the market in its rise.
Ether, the second most capitalized cryptocurrency on the market with $417 billion, is close to $3,500 this Thursday, a record since April 2022. In one day the cryptocurrency of the Ethereum blockchain gains 5%, over a week 16 % and over one month 50%. This is even better than bitcoin which gained 44% over one month. This cryptocurrency is benefiting from the euphoria of investors who, after the spot bitcoin ETFs launched in mid-January, are hoping for the arrival of spot ether ETFs in May.
Other altcoins (those cryptocurrencies other than bitcoin) are also doing well. This is the case of dogecoin, the favorite cryptocurrency of billionaire Elon Musk, which gains 29% in one day, 50% in one week and 60% over one month. Launched as a joke, this “meme coin” is today the tenth most capitalized cryptocurrency on the market, boasting a valuation of more than $18 billion. Finally, the cryptocurrencies solana, cardano and bnb (the cryptocurrency of the Binance crypto exchange) showed good performance over a week, gaining 20%, 14% and 10% respectively.
From euphoria to cold sweats
Two factors explain the rise of bitcoin. On the one hand, the American stock market watchdog (the SEC) authorized 11 spot bitcoin ETFs on January 10, offered in particular by asset managers like Blackrock and Fidelity. Since then, investors have been flocking to these new products. An ETF (or Exchange Traded Funds) is an index fund trading on a stock exchange which follows the evolution of a stock index (or one or more financial or physical assets, such as gold) by replicating the increase as well as the drop in the price of this index (or these assets).
Furthermore, some investors are anticipating an event that will take place on April 19: the bitcoin halving. This event consists of the halving, every 4 years, of the number of new bitcoins put into circulation on the market (as rewards to miners who validate transactions). Over the last three halvings, a reduction in the available supply of new bitcoins has caused the value of the asset to increase. Some experts anticipate a further increase in assets after April 2024.
Despite this positive outlook for the market, this Wednesday, February 28, a technical problem on the Coinbase crypto exchange caused bitcoin to fall by 8% in one hour, creating cold sweats on the market. In this context, investors must remain vigilant.
Source: https://www.bfmtv.com/crypto/bitcoin/quelles-sont-les-autres-cryptomonnaies-qui-profitent-de-l-envolee-du-bitcoin_AV-202402290436.html
