- The crypto market cap now exceeded $2.6 trillion.
- BTC and ETH continue to hold a larger percentage of the crypto market capitalization.
According to data from CoinMarketCap, the crypto market has risen by more than 7% in the past 24 hours. All major assets posted significant gains during this period. Why did the crypto market rise today?
The crypto market is seeing an increase
At the time of writing, the cryptocurrency market cap is approximately $2.62 trillion CoinMarketCap. The data also showed that the market capitalization had risen by more than 7.6% in the past 24 hours.
This increase is driven by the rising prices of the top crypto assets, which have significant market capitalizations.
An analysis of top assets showed that Bitcoin [BTC] and ether [ETH] have risen by more than 5% and 19% respectively in the past 24 hours.
In addition, Binance Coin [BNB] and Solana [SOL] have made a profit of more than 7% and 2% respectively in the same period.
The market was experiencing positive sentiment at the time of writing, with the Fear and Greed Index standing at 70, indicating a state of ‘greed’.
Why is the crypto market on the rise?
In the past 24 hours, reports suggest that US regulators are more likely to approve a spot Ethereum ETF.
This positive sentiment stems from recent actions by regulators and institutions submitting ETF proposals.
The approval of an ETH ETF is seen as a major victory not only for Ethereum but also for other crypto assets.
Many believe that once an ETH ETF is approved, other cryptocurrencies will also have a better chance of gaining spot ETF approvals.
This would lead to more institutional funds flowing into the market, giving traditional financial traders greater exposure to cryptocurrencies.
Furthermore, after weeks of outflows, Bitcoin is now experiencing consecutive inflows into its spot ETFs.
According to data from Soso valuenet inflows reached $241.12 million on May 20, marking the sixth consecutive day of net inflows.
The total traded value exceeded $2.4 billion, and cumulative net inflows now exceed $12.8 billion.
Source: Soso value
Bitcoin and Ethereum are leading the gains in the crypto market
According to CoinMarketCap data, Bitcoin held over 53% of the total cryptocurrency market capitalization at the time of writing.
BTC’s market capitalization has increased by more than 5% in the past 24 hours, reaching approximately $1.4 trillion.
On May 20, the king coin rose almost 8% to close at around $71,400. At the time of writing, the stock is trading around $71,100, which represents a negligible decline of less than 1%.
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Conversely, Ethereum captured over 17% of the market cap at the time of writing, with its market cap increasing by around 20% in the past 24 hours to nearly $450 billion.
The king of altcoins was trading at over $3,700, indicating an increase of over 2% since this report.