Bitcoin rose to its highest level in over three weeks on Tuesday, adding to its gains since Russia’s invasion of Ukraine, boosting other digital currencies such as Ether. Bitcoin gained up to 5.6 percent to $43,337, its highest level since March 3, and was last up 3.6 percent. Ether’s second most valuable digital asset rose as much as 5.4 percent to its highest level since February 17.
Bitcoin to Lead in More Growth in the Crypto Market?
Since its intra-day low of $34,324 on February 24, when Russia invaded Ukraine, the original cryptocurrency has gained more than 26 percent. Its resurgence has paralleled, albeit more significant, stock market increases.
Ethereum has gained 4% in the last 24 hours, and the following top 10 cryptocurrencies are not far behind: Solana and Avalanche are up 2%, while Cardano is up 6%. Terra has dropped out of the overall outline by 0.5 percent.
The overall capitalization of the crypto market climbed by 3% on the day, reaching $1.92 trillion. Because of the BTC spike, the Bitcoin Dominance Index increased by 0.1 percentage point to 42 percent. The cryptocurrency fear and greed index decreased by four points in a single day to 26 since its estimations do not account for the recent bitcoin surge. In contrast to the neutral or negative attitude in the financial markets, this is not the first such increase in BTC since the beginning of March.
All of this signals that the bulls are ready to take significant action. However, such impulses cannot be based on a firm foundation for the time being because the underlying demand for risks is clearly under pressure. In this situation, the bulls were only capable of forming a support near the lows of July last year (i.e., below $30K). In January, the threshold was $35,500, and by the end of February, it had risen to $37,500.
Do Kwon Buys $125 Million in Bitcoin
Do Kwon, the creator of Terra in South Korea, probably said too much in a Twitter space chat. He assured Udi Wertheimer that the UST stablecoin would be backed not just by Luna but also by BTC. It was sufficient to have people seeking the blockchain, of course, an eth blockchain. A Gnosis safe address purportedly belonging to Luna transferred $125 million in tether coins.
The address had almost $2 billion in USDT and USDC, $125 million of which was just transferred to what seems to be a Binance address. The move also corresponded with the initial price increase for bitcoin. As a result, the project is following in the footsteps of MakerDAO. It is diversifying the assets that stabilize DAI, in this case, beginning with bitcoin.
According to analysts, institutional investors have withdrawn almost $46 million from crypto funds in the past week. Meanwhile, the Commonwealth Bank of Australia, its most significant financial institution, reported a sharp increase in its client’s interest in crypto assets.
Ether Outperforms Bitcoin
Ether, a smaller peer, was even more buoyant, gaining over 4% to go beyond the psychologically significant $3,000 barrier. Since Friday, the Ethereum blockchain network’s underlying currency has slowly risen from below $2,800. Ether’s outperformance on Tuesday reflects its recent gains relative to Bitcoin. Ether has increased by 18% in the last month, whereas Bitcoin has increased by 14% in the same time frame.
An upcoming update termed “The Merge” will see the technique for mining the token move from an energy-intensive procedure called proof-of-work to proof-of-stake, adding impetus to Ether’s price.
Cryptocurrencies such as Bitcoin and Ether are not climate-friendly, as they require a significant amount of energy to mine. This process validates the transactions on the blockchain.