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This is why the cryptocurrency market is active today
The cryptocurrency market is making waves, seeing a notable increase in the last 24 hours. The total market capitalization increased by 2.80% to a whopping $2.18 trillion as of May 3. What is fueling this surge?
Well, it’s a mix of exciting developments in both the world of cryptocurrencies and traditional finance.
PayPal’s big move with MoonPay
The market recovery is in line with the PayPal news partnership with crypto app MoonPay. This collaboration will enable PayPal’s 426 million US customers to trade over 110 cryptocurrencies, significantly expanding the payments giant’s crypto ecosystem.
However, this move by PayPal will likely increase the legitimacy of the market and attract more investors to the crypto space.
PayPal has previously shown support for Bitcoin, Ethereum and its proprietary stablecoin, PYUSD. More recently, PayPal has expanded its services to allow international transfers using PYUSD through its Xoom platform.
The buzz of bond traders and the changes in the market
Meanwhile, in traditional finance, that of the Federal Reserve recent announcement it shook things up. Bond traders now expect a rate hike, originally scheduled for July 2024, to happen in November. This shift, combined with falling yields on safer investments like 10-year U.S. Treasuries, set off a chain reaction. Investors are feeling safer taking risks, seeking higher returns in cryptocurrencies and stocks.
Post-halving models
The recent market surge is no fluke; follows a familiar pattern seen after Bitcoin halvings. Investors are hoping for a post-halving recovery, drawing confidence from historical trends. Adding to the optimism is the launch of spot Bitcoin Exchange Traded Funds (ETFs) in the United States Hong Kongfueling bullish sentiments.
Investor perspectives
From a technical point of view, several indicators give signals optimism for the cryptocurrency market. Chart analysis reveals a bullish continuation pattern that resembles a bullish flag, suggesting upside momentum. According to experts, this model could pave the way for the market capitalization to reach $3 trillion as the next milestone.
With positivity prevailing, investors are looking forward to further growth and potential milestones in the cryptocurrency space. The stage is set, the players are ready, and all eyes are on the prize as the cryptocurrency market prepares for what lies ahead.
Also check: Week of Major Economic Events: What to Expect from the Cryptocurrency Markets
Is this the cryptocurrency bull run we’ve been waiting for? Buckle up and stay tuned!