Surpasses $2.61 Trillion…Crypto Market Revives

"Regulatory Uncertainty Lifted"…Market Rises Again with Institutional Fund Inflow

▲ Cryptocurrency ©

The cryptocurrency market is once again on an upward trend, driven by continued institutional fund inflows following the achievement of regulatory clarity.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 26 (local time), the total cryptocurrency market capitalization rose by 1.08% over 24 hours, reaching approximately $2.61 trillion.

The key driver of this surge is the change in the regulatory environment. The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) classifying major assets such as Bitcoin (BTC) and Ethereum (ETH) as digital commodities has largely resolved years of regulatory uncertainty. This has lowered the barriers for institutional investors to custody and invest in ETFs, and indeed, Bitcoin spot ETF assets have expanded to approximately $104.18 billion.

Market sentiment also shows a stable trend. The Fear & Greed Index is at 45, situated in the 'Neutral' zone, creating an environment where gradual buying interest is flowing in without excessive fear. Simultaneously, the total market capitalization is trading above its 7-day moving average of $2.59 trillion and its 30-day moving average of $2.46 trillion, maintaining a short-term upward structure.

Technically, the $2.54 trillion level is acting as a key support line. If this level is maintained, there is potential for further upside to $2.71 trillion, but an analysis suggests that if it falls below $2.49 trillion, selling pressure could increase.

Ultimately, the current market appears to have entered an 'initial upward phase' driven by institutional fund inflows based on regulatory clarity. However, the sustainability of future gains is said to depend on ETF fund flows and additional regulatory events.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*