Major cryptocurrencies surged on Sunday evening amid overall optimism in the cryptocurrency market and as FOMO continues to draw in retail investors.
What Happened: Bitcoin’s price has surged to over $62,000. Notably, the rally in February resulted in the longest monthly green candle in the asset’s history.
In April this year, the Bitcoin halving is set to occur, an event that reduces the rate of new BTC mining. Historically, this event has been accompanied by a surge in the overall market.
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The global cryptocurrency market cap now stands at $2.31 trillion, showing a 1.36% increase in the past 24 hours.
U.S. stock futures showed minimal movement Sunday night following the Nasdaq Composite’s surge to a new all-time high on Friday, surpassing its 2021 record.
Futures linked to the S&P 500 saw a slight decrease, while Nasdaq-100 futures also edged lower. Additionally, futures associated with the 30-stock Dow Jones Industrial Average experienced a 0.1% decline, slipping by 47 points.
This week, investors will closely observe Federal Reserve Chair Jerome Powell's updates on monetary policy to the House of Representatives on Wednesday and the Senate on Thursday for indications about the future direction of interest rates. On Wednesday, the release of the ADP Employment Survey and January job openings data will offer further insights into the labor market.
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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe said that Bitcoin has shown a rally, surging from $16,000 to $60,000.
"That means that altcoins are on the edge of a massive run. Far beyond their all-time highs."
Cryptocurrency analyst James Van Straten said that on March 1 alone, approximately $2 billion Bitcoin were withdrawn.
"I don't think I've quite seen anything like this before," he said. "All in all on the Friday, just over $2.3B worth of Bitcoin left exchanges. One of the biggest withdrawals in over 5 years."
Crypto analystGareth Soloway pinpointed a factor that could drive Bitcoin towards its projected milestone.
In an interview with David Lin on March 2, Soloway suggested that a surge in liquidity could work in favor of Bitcoin’s performance.
According to Soloway, investors should scrutinize liquidity "like a hawk." "If we see an increase in liquidity in the system, it absolutely is on the table [Bitcoin to $100,000 in 2024]. Any sort of increase in liquidity with markets at all-time highs doesn't allow the Fed to really maneuver because it's going to keep inflation high. <…> It's all about that liquidity in the system. Watch it like a hawk," he said.
On-chain analystAli Martinez said that approximately $48.54 billion has been injected into the cryptocurrency market, marking the most significant influx of capital since October 2021.
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