The total market capitalization of the cryptocurrency space increased from approximately $3.42 trillion to $3.45 trillion over the past 24 hours, an uptick that appears to be a continuation of a rise that began at the start of the ‘year.
Since the start of the year, the cryptocurrency market has added more than $200 billion to its market capitalization, with the price of bitcoin rising from a low of $92,000 on December 30 to $99,500.
Ethereum ether, the second-largest digital asset by market capitalization, has seen a similar recovery, rising from around $3,100 to over $3,600 at the time of writing. It is worth noting that crypto economist Ben Lilly has suggested that the token’s price is being overtaken by the growing value locked in Ethena, which is shorting ETH as part of its hedging strategy.
The current boom in the cryptocurrency market has largely been attributed to expectations of a more cryptocurrency-friendly regulatory environment under President-elect Donald Trump. Expected policy changes, including the creation of a strategic Bitcoin reserve and the appointment of Paul Atkins as head of the SEC, have boosted investor confidence.
Additionally, the approval of Bitcoin spot exchange-traded funds early last year made digital assets more accessible, contributing to the market’s bullish momentum.
The rise also comes at a time when corporate bitcoin holders are doubling down on the flagship cryptocurrency, with MicroStrategy announcing plans to raise up to $2 billion via preferred stock offerings to fuel additional purchases of BTC this year.
Similarly, Metaplanet, a Japanese investment firm often referred to as “the MicroStrategy of Japan,” said it was looking to acquire 10,000 BTC worth nearly $1 billion at current prices.
Featured image via Unsplash.
