The market for cryptocurrencies is widely known for its fluctuating and volatile prices. Bitcoin and other crypto tokens experience significant price changes over a short period of time. However, this is something that makes the crypto world exciting for investors and traders. Over the course of last few weeks, the market has undergone spells of bull and bear runs.
Bitcoin closed at around $37,000 on Friday. However, the prices for the leading coin raised significantly over the weekend. It went past $42,500, and is currently priced at around $42,700. This is a major positive development for the coin, as it was drenched in a persistent bear phase. Bitcoin dropped at the start of January to touch a low of $33,000. However, it started February from the levels of $37,000, and now stands close to $43,000. Thus, a positive sentiment is currently running through the digital asset market.
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How is the broader market of cryptocurrencies performing?
The overall crypto market has lost almost $1.3 trillion in its total market cap over the last month. The market cap peaked at $3 trillion in November last year. But since then, it has struggled to keep up with the market conditions. At the time of writing, the global crypto market cap stands at around $1.71 trillion.
The altcoin market is also progressing as several tokens have gained majorly over the last week, and also over the last 24 hours. Ethereum is now trading close to the $3,100 mark. All top cryptocurrencies, including BNB, XRP, ADA, SOL, LUNA, DOT, AVAX, have amassed double-figure percentage gains over the last week. Moreover, meme coins like Shiba Inu and Dogecoin have also performed well in a green market. Metaverse and gaming token investors have also reaped high profits with this positively performing market.
A few factors have pushed the prices of cryptocurrencies lately. India and Russia have moved to regulate the use of crypto in their countries. India has imposed a 30% tax on crypto earnings. Russia is planning to finalize crypto regulation within the next week. This shows that countries are now more interested in exploring the scope of the crypto market rather than imposing an outright ban on them.
In addition to this, El Salvador has also dismissed the concerns of the IMF on the use and legalization of Bitcoin in the country. Bitcoin is a legal tender in the country, and El Salvador has no plans of changing its status. The value of Bitcoin raised significantly over this news as well.
