Bitcoin's BTC/USD value soared past $54,000 on Monday, marking its highest point since November 2021 and breaking free from its recent trading stagnation.
This surge propels the cryptocurrency market into a renewed rally, with significant movements observed across the board.
What Happened: At the time of writing on Monday, Bitcoin's price stood at $54,329, reflecting a 4.6% increase over the last 24 hours.
Ether ETH/USD, trailing closely behind Bitcoin in market size, also experienced a surge, climbing nearly 2% to hit a 22-month high of $3,170.
Coinglass data showed short liquidations spiking
Also Read: MicroStrategy Buys Another 3,000 Bitcoin Amid Surge In Crypto Investment Product Inflows
QCP Capital's Insight: The trading firm QCP Capital highlighted the heightened activity in the altcoin sector, noting that funding rates for these assets have reached levels as high as 40% annually in perpetual swaps.
Both Bitcoin and Ether's forward curves have also seen significant elevation, offering yields of up to 17% at certain points.
However, QCP Capital warns that such speculative shifts towards altcoins and elevated funding rates are often mid-cycle phenomena that are challenging to maintain, suggesting a potential pullback in prices following the recent rally.
The global cryptocurrency market cap on Monday stood at $2.08 trillion, a 3.8% change in the last 24 hours and 91.7% change one year ago. As of Monday, the market cap of Bitcoin stood at $1.06 trillion, representing a Bitcoin dominance of 48.53%.
Meanwhile, the stablecoin market cap is at $141 billion and has a 6.53% share of the total cryptocurrency market cap.
Analyst takes: Cryptocurrency trader Altcoin Sherpa expects Bitcoin to outperform altcoins in the short run.
Meanwhile, technical analyst Ali Martinez highlighted the record number of Bitcoin whale addresses recently created:
#Bitcoin whales are going parabolic! In just the last month, over 150 new #BTC addresses, each holding more than 1,000 $BTC, have been created. pic.twitter.com/3lox2KrPcm
— Ali (@ali_charts) February 26, 2024
With the Bitcoin halving on the horizon, interest in cryptocurrencies is unlikely to fade any time soon.
Read Next: Miss Out On Crypto's Future? What You Need To Know About SIPs
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