Bitcoin Surges to $35.5K Amidst ‘Mini Altcoin Frenzy’ Boosting Crypto Market Cap to $1.3 Trillion

Bitcoin Surges 3% to $35,500 in Short Squeeze, Solana Leads Altcoin Gains in Widening Crypto Rally

Bitcoin experienced a significant spike on Wednesday afternoon, rising nearly 3% to reach $35,500. This surge was attributed to a short squeeze, while altcoins, particularly solana, also saw gains. As a result, the total cryptocurrency market cap reached $1.3 trillion, its highest level since May 2022. Analysts at K33 recommended “aggressive accumulation of bitcoin” for the month of November.

The value of bitcoin (BTC) rose to $35,500 on Tuesday, driven by the growing rally in altcoins and a risk-on sentiment in traditional markets. This surge disrupted what had been a quiet and slightly lower session, as bitcoin experienced a sudden spike of nearly 3% from $34,600. Some experts suggested that this spike was due to a short squeeze in the derivatives markets. At the time of writing, bitcoin was trading at $35,600, representing a 2% increase over the past 24 hours.

During the same period, solana (SOL), toncoin (TON), and Crypto.com’s Cronos ecosystem token (CRO) all saw gains of 5% to 10%. This was aided by continued capital rotation into altcoins. On the other hand, Binance’s BNB, Ripple’s XRP, Cardano’s ADA, and dogecoin (DOGE) experienced a slight retreat, giving back some of the gains they had made earlier in the week. Ether (ETH) remained relatively stable at around $1,900. However, analysts warned against underestimating the potential of the world’s second-largest cryptocurrency, noting that increased blockchain activity could push its price to $3,000.

The CoinDesk Market Index (CMI), which tracks 189 cryptocurrencies, rose by 1%. With the crypto rally now extending beyond just bitcoin, the total cryptocurrency market capitalization reached $1.31 trillion on Tuesday, according to TradingView data. This represents the highest reading since the collapse of the Terra ecosystem in late May 2022.

The digital asset space also received support from increasing risk-on sentiment in traditional markets. Safe haven asset gold experienced a decline to its lowest price in three weeks, while West Texas Intermediate crude oil (WTI) plummeted by 4% to its weakest level since July. In contrast, the Nasdaq 100 saw a 1.1% increase, extending its winning streak to seven days.

Looking ahead, analysts are observing a “mini altcoin season” as bitcoin’s price remains compressed in the $34,000 to $36,000 range. This behavior is typical in the crypto market, as traders take profits following a significant rally in bitcoin and invest in smaller, riskier tokens. Additionally, K33 noted that accelerating inflows into bitcoin-related funds are providing support for the price of BTC. K33 senior analyst Vetle Lunde expressed a bullish sentiment, citing the upcoming ETF verdict and the involvement of institutional traders in the derivatives market. Lunde recommended aggressive accumulation of bitcoin throughout November, with plans to distribute and reallocate to altcoins once the market conditions are favorable.

Martin Reid

Martin Reid

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