The crypto-currency market has surpassed $1 trillion again thanks to good and bad news, and a bullish rally could be underway.
The two largest crypto-currencies, Bitcoin and Ethereum, soared following today’s bad U.S. unemployment report. At the same time, the total capitalization of the crypto-currency market has once again reached the all-important $1 trillion mark.
Despite the rise in unemployment, the price of BTC rose by almost 5%, while the price of ETH soared by 8.5%. It would seem that with a worsening economy, one would expect the two most risky financial market assets to fall, but investors have once again witnessed the paradox of good “bad“news.
According to the well-established narrative, the positive was triggered by the assumption that for the U.S. Fed, rising unemployment could be an argument for revising its monetary policy hawkish and slow the pace of Fed rate hikes. That said, the slowing trend is present as the regulator’s attention turns to the height of the rate hike, which follows Fed Chief Jerome Powell’s speech.
The traditional links of the crypto-currency market
It seems lost to regret that the crypto market has become linked to traditional finance, as the trend of its institutionalization continues. For example, according to the latest financial results of the leading US crypto-currency exchange, Coinbase, 83.6% of the exchange’s total trading volume was done by institutional investors, despite a decline of $58 billion.