The markets saw significant gains yesterday triggering talks of an incoming bull market.
For the first time since early October, Bitcoin was able to surpass the $20,000 mark, reaching a market cap of $385 billion. However, the largest crypto asset was not the one with the most significant gains.
Ethereum jumped as much as 11%, getting to a high of $1,509 and reaching pre-Merge levels, before reversing its gains slightly. Delphi Digital, a crypto research company, pointed out that someone bought $500 million worth of ETH perpetual contracts in under an hour, which caused $80 million to be liquidated from the markets.Meanwhile, the day after Cathie Wood’s fund ARK Invest announced it had added 10,880 shares of Coinbase to its holdings, the shares of the crypto exchange (COIN) closed the day with a massive increase of 13.04%.
Additionally, and quite surprisingly, the token that surged the most among the top 10 crypto tokens by market cap was ADA, the token of the Cardano blockchain. ADA rose by over 12%, going from $0.35 to $0.41.
Popular crypto analyst Arthur Hayes implied that the pump could be attributed to US Treasury Secretary Janet Yellen. “The US Treasury is thinking about supplying the market with more short term T-bills to alleviate a shortage,” he wrote. However, he also warned: “If this is just a trial balloon and it pops, make sure to put on your adult diaper for the reversal.”
Whether today’s pump means the bear market is over and there’s an incoming bull market is a question that remains to be answered. Next week, the Federal Reserve will decide how much it will raise interest rates, which is always important for investors looking into risk-on assets.
