Here Is Why The Crypto Market Is Up Today
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The cryptocurrency market has experienced a notable uptick, with the total market capitalization climbing by 2.80% in the last 24 hours to reach $2.18 trillion as of May 3. This surge coincides with positive developments in both the cryptocurrency and traditional financial sectors.
PayPal’s Partner with Crypto App MoonPayThe market’s recovery aligns with news of PayPal’s partnership with crypto app MoonPay. This collaboration will allow PayPal’s 426 million U.S. customers to trade over 110 cryptocurrencies, expanding the payment giant’s crypto ecosystem significantly.
However, this move by PayPal is likely to boost market legitimacy and attract more investors to the crypto space.
Earlier PayPal has shown support for Bitcoin, Ethereum, and its proprietary Stablecoin, PYUSD. More recently, PayPal expanded its services to allow international transfers using PYUSD through its Xoom platform.
Bond Market OutlookFollowing the Federal Reserve’s announcement that interest rates won’t rise soon, bond traders now anticipate the first rate hike in November instead of July 2024. This adjustment, coupled with declining yields on safer investments like the U.S. 10-year Treasury note, has led to increased risk-taking behavior among investors.
As bond yields decrease, investors are more inclined to pursue higher-risk assets such as cryptocurrencies and stocks for more gain.
Post-Halving GainThe recent market gains mirror typical consolidation trends observed after Bitcoin halvings. Market participants are expecting potential post-halving increases based on historical patterns. The launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S. and Hong Kong has contributed to the bullish sentiments.
Technical Analysis Signals Bull RunVarious technical indicators suggest a bullish trend in the crypto market. Chart analysis reveals a bullish continuation pattern resembling a bull flag, indicating potential upward movement. According to technical rules, this pattern could lead the market cap to target around $3 trillion as the next upside goal.
As market sentiment remains positive, investors are eyeing further growth and potential milestones in the cryptocurrency space.