Why Is the Crypto Market Rising Today?

The cryptocurrency market observed a strong recovery in the year 2023 after witnessing a slump hurt by global macroeconomic situations and inflation, and the year 2024 finally marked Bitcoin’s meteoric rise to $68,770 inching closer to its previous all-time high of $68,789 in Nov. 2021.

The world crypto market capitalization stood at $2.52 trillion as of March 5, 2024, helped by staggering inflows via the U.S. Securities and Exchange Commission’s approval of Bitcoin Spot Exchange Traded Funds (ETFs) that have lifted the market sentiment. 

Leading cryptocurrency coins–Bitcoin and Ethereum–have shown robust stability from the beginning of 2024 and have lately been trading in extreme “greed,” a factor that determines if traders are looking to accumulate more digital assets. This has built hope among the Bitcoiners for BTC to show an imminent remarkable surge until the halving event, which is expected to take place in April 2024.

Let’s have a look at the important reasons that have turned the cryptocurrency market hopeful in 2024 and what investors must do.  

Crypto Markets’ Spectacular Performance 

Overall, the crypto market has shifted from “fear” to “neutral” and now it is “extreme greed”. The world’s largest cryptocurrency, Bitcoin, has been rising exceptionally since October 2023 and is currently hovering around the $68,000 level as of March 5, 2024, for the first time since Dec. 2021.

This sudden surge is all thanks to retail investors’ interest in Spot Bitcoin ETFs, which currently have an inflow volume of around $562 million and the much-anticipated Bitcoin Halving event that is set to take place in April of 2024.   

Crypto world’s second-most popular coin Ethereum has also shown signs of recovery and was trading at $1,850 levels in April 2023 compared to $1,256 in January 2023. Ethereum marked its highest peak since August 2022 after touching the $2,100 level in mid-April of 2023 when the crypto coin saw a rally post the successful launch of the ETH hard fork “Shapella” that is touted to transform the landscape and applications of Ethereum. The upcoming Dencun upgrade anticipated in the month of March is one of other factors that have led to an increase in ETH’s prices. Currently, Ethereum is trading at 17.8% and forming a strong resistance at $3,774 levels. 

Performance of the Most Popular Cryptocurrencies

(As of March 4, 2024)

What Lies Ahead For the Crypto Market? 

The current surge in prices indicates the cryptocurrency market is set for new records this year. With Bitcoin almost touching its all-time highs, crypto market participants expect previous records to be broken much before the Bitcoin Halving event and with upcoming ETH upgrade “Dencun” takes place.

At present, the global crypto market capitalization is firmly standing at $2.5 trillion. The question that lies ahead is whether the current situation is a bull run or a bull trap. To comprehend this, it’s important to consider the history of key crypto coins such as Bitcoin—In the year 2021, Bitcoin prices increased above the level of $57,000, when the price reached its high point before slipping into a prolonged bear market. By the start of the year 2022, Bitcoins prices sank by almost 42%. 

The kind of volatility Bitcoin prices are experiencing now isn’t new and there is no guarantee once the prices and demand peak, the rally would continue and for how long. Investors must remember investing in any asset class, whether structured or decentralized, is highly risky and they can potentially lose all the capital that has been invested.

Crypto Market Capitalization

How To Invest in Crypto?

The most important aspect to remember before investing in a cryptocurrency is that the crypto market is highly volatile and investing does not always turn out as planned. Currently, the market is still recovering and investing now might not be a good idea. Even crypto experts state the current crypto market is dynamic with prices highly unpredictable.

It definitely isn’t a wise choice to invest your life savings into cryptocurrency given the ambiguity. If you’re looking to invest in cryptocurrencies, the best bet is to do thorough research and analysis before investing. Here’s how you can invest in crypto coins by following key steps:

Step 1: Understand and do your research on the current crypto market and its risks.

Step 2: Choose the amount you’re willing to invest.

Step 3: Choose the cryptocurrency you want to invest in.

Step 4: Choose a crypto exchange platform for your investment. 

Step 5: Make your own account through a crypto exchange platform.

Step 6: Complete the verification and know your customer (KYC) process.

Step 7: Fund your crypto account and you’re good to trade your desired crypto coin.

Step 8: Choose a crypto wallet to store your cryptocurrency. There are multiple digital wallets like mobile wallets, hardware wallets, desktop wallets and online wallets. Learn more about the best crypto wallets in India.

Step 9: Secure your wallet.

Step 10: Hold and then sell or buy to gain profit as deemed appropriate.