The crypto market on Tuesday registered impressive gains with the total market capitalization witnessing a surge of $6 billion. The bullish market sentiments propelled Litecoin to its new high of the year while pushing Bitcoin close to psychological resistance level to end the bear phase. At the time of press, the total market capitalization of cryptocurrency was pegged at $132.2 billion. In terms of daily volume, crypto registered volume of more than $33 billion which translates into a gain of $5 billion over the past 24 hours.
Binance Coin and Litecoin lead gains
In what is becoming more of a trend now, the market rally was led by altcoins rather than the Bitcoin. The first wave of the rally was catalyzed by Binance coin and followed by the impetus from Litecoin. With the backing of the world’s largest crypto exchange, Binance coin registered an impressive gain of 17.84% and rose to $13.40. The total market capitalization of the coin on Tuesday stood at $1.9 billion which is just short of $150 million than what other stablecoin Tether boasts of. Litecoin also got its own share of gains later in the day as its value rose more than 10% within a few minutes of trade. The coin settled at $52.93, significantly up by 13.86%. On the day, Litecoin registered a peak value of $54.68 which was its highest value in 2019.
Bitcoin, which is the largest cryptocurrency by market capitalization, rose 3.29% to clear $3,830 on Coinbase and Bitstamp. In terms of global average, Bitcoin registered a solid gain of $168 over its low in the last 24 hours, according to a report on the CryptoCompare/Yahoo. That said, compared to other large market-cap crypto assets, Bitcoin performance paled into insignificance that was reflected in terms of its decreased market share with its market share falling from 52.4% to 51.7%, somewhat hurting its marker dominance.
Reasons behind Market Surge
The reasons for the upward swing in the market are yet to be known. Market analysts and experts are scratching their heads to find what caused the market rally on Tuesday, but still, there is no clear cut answer explaining the market’s bull run. Some are of the viewpoint that efforts of Litecoin to enhance the privacy stimulated the growth while others correlate the partnership allowing K-POP fans to buy the concert tickets using Litecoin to its impressive gains. However, both of these developments unfolded back in January and February and unlikely to affect the Litecoin’s market fortunes in March. Some speculated news of Starbucks accepting crypto could explain Bitcoin’s gains, but that doesn’t also fail to explain why Bitcoin’s couldn’t be able to capitalize on the gains. The most plausible reason behind this growth is the willingness of the traders to readjust the upside targets post the Sunday’s sell-off and consolidation that followed after that.
Despite the recent spike, Bitcoin is still very far from clearing its resistance level to enter into a bullish phase of growth. Many of the market experts including the brokers at BitOoda believe that Bitcoin has to breakthrough $6,000 level before it will enter into an official bullish phase.