Why Is the Crypto Market Up Today?

The total crypto market cap (TOTAL) increased by $53 billion over the last 24 hours, and Bitcoin’s (BTC) price also managed to reclaim key support. Altcoins performed pretty well, too, with Nervos Network (CKB) rising by 14% in the past day.

In the news today:

BlackRock and Microsoft plan to launch a $30 billion fund focused on AI infrastructure, including data centers and energy projects. This move could significantly impact AI crypto tokens due to both companies’ influence in the digital asset space.
Crypto analyst Michael van de Poppe recently tweeted that the market could be on the verge of “the biggest bull run ever,” citing the upcoming Federal Reserve interest rate cuts in the US as a key catalyst.

The Crypto Market Recovers

The total crypto market cap experienced a short-term recovery, adding $53 billion in the last 24 hours. This brought the overall market value back above $2 trillion, now standing at $2.03 trillion. The recent uptick has fueled optimism among investors, signaling potential stability.

As market participants await the upcoming Federal Open Market Committee (FOMC) meeting, JPMorgan CEO Jamie Dimon suggested the Fed may only reduce interest rates by 25 basis points (bps) instead of the expected 50 bps. Such a move could have an unpredictable impact on both the stock and crypto markets.

Read More: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Despite the uncertainty, bullish sentiment could drive TOTAL closer to the $2.11 trillion resistance. This level has not been breached in the last three weeks, making it a key target for further market gains.

Bitcoin Remains Rangebound

Bitcoin’s price recently bounced back after nearly testing the key support level of $57,270, bringing it above $60,000. This recovery indicates that BTC still holds some bullish momentum, reinforcing optimism among investors as they anticipate further gains.

For Bitcoin to breach the $61,725 resistance, market reactions to the upcoming interest rate cut must be positive. A favorable response could flip this barrier into support, enabling BTC to push higher and sustain its bullish trend.

Read more: Bitcoin Halving History: Everything You Need To Know

However, if Bitcoin fails to breach this level, as it has in the past, a potential drawdown to $57,270 is likely. While the chances of a fall below this support are slim, a breach could drive BTC toward $53,980.

CKB Made it To the Top

Nervos Network’s native token, CKB, recorded the largest price increase among altcoins, making it the best-performing asset in the past 24 hours. This surge has caught the attention of investors, positioning CKB as a standout in the cryptocurrency market.

Currently trading at $0.018, CKB has seen a 14% increase over the past day. This continued bullish momentum follows last week’s performance, where the altcoin hit an intra-day high of 313% before correcting to a 50% increase. The upward trend signals positive market sentiment for the token.

Read More: Nervos Network (CKB) Price Prediction 2024/2025/2030

However, a bearish scenario cannot be ruled out completely. While CKB could breach the $0.020 resistance and continue its rally, there’s a risk of losing the $0.016 support. If this happens, the altcoin could fall to $0.012, invalidating the current bullish outlook.