Bitcoin has once again crossed the much-awaited $1 million (Rs. 83 lakh approx) mark, creating excitement in the global cryptocurrency market. This sudden rally came after a significant development involving former US President Donald Trump, who reportedly approved a trade deal between the United States and the United Kingdom. This positive geopolitical news triggered strong investor confidence in digital assets, especially Bitcoin.
According to market analysts, Trump’s move supports alternative financial systems like cryptocurrencies, as it reduces uncertainty and shows stability in international trade. As a result, global crypto investors began buying aggressively, leading to a sharp price hike across various coins.
Bitcoin Rallies Over 10% in May, Touches New Heights.
Bitcoin’s price jumped over 5% in a single session, touching a high of $103,969.54. At 7:20 am, data from CoinMarket showed Bitcoin trading at $102,935.75. This is the first time since 7 February that Bitcoin has crossed the $1 million threshold. In that earlier session, the price had reached $100,133.9.
So far in May, Bitcoin has shown a 10% gain. Over the past month, the rise has been more than 35%, and in the last year, the price has surged by nearly 67%. These numbers highlight a strong comeback for Bitcoin, which had remained under pressure for a few months due to global inflation and interest rate concerns.
Other Cryptocurrencies Also Soar with Bitcoin
Bitcoin and many other digital currencies have also gained significantly in the current rally. Investors are seeing the overall market sentiment turning bullish again. Here’s a breakdown of how other top cryptocurrencies have performed in the last week:
- Ethereum (ETH): The second-largest cryptocurrency surged over 20% and is currently trading at $2,200. It gained 19% in the last seven days.
- XRP: Jumped more than 8% to reach $2.21. Weekly growth stands at around 4%.
- Solana (SOL): Rose over 10% to reach $163.47. It climbed 9% over the last week.
- Dogecoin (DOGE): Spiked 13% and touched $0.19. It grew by 8% in a week.
- Cardano (ADA): Increased by 13% to reach $0.77, with a weekly growth of 9%.
- Polkadot (DOT): Witnessed an 18% surge, reaching $4.02. It gained 14% in the last seven days.
- Chainlink (LINK): Rose 13% to touch $15.89, showing an 8% rise weekly.
- Avalanche (AVAX): Increased 13% and is now priced at $22.33, showing a 2% weekly gain.
- Stellar (XLM): Saw a 13% increase, trading at $0.2959 with a 7% gain in a week.
- Shiba Inu (SHIB): Went up by 11% to reach $0.00001437, with a 6% weekly rise.
What’s Driving This Crypto Rally?
Several factors are contributing to this massive momentum in the crypto market:
- Donald Trump’s Trade Deal: The approval of the US-UK trade agreement gave markets a strong positive push. Investors believe such political clarity reduces the fear of economic instability and boosts risk-taking in alternative assets like crypto.
- Stronger Global Demand: Both retail and institutional investors are raising interest in Bitcoin and other cryptocurrencies. Bitcoin ETFs, crypto-friendly regulations in some countries, and growing financial uncertainty push demand higher.
- Limited Supply Factor: Bitcoin’s fixed supply of 21 million coins means the price rises sharply when demand increases. The recent halving cycle and increase in wallet holding by big institutions have limited the supply further.
- Inflation Hedge: With inflation still a concern in major economies like the US and UK, many investors see Bitcoin as a hedge against falling currency value.
- Improved Public Sentiment: Social media trends, positive news, and influential endorsements (like those from Elon Musk or political figures) also increase general awareness and trust in the crypto space.
Total Crypto Market Cap Nears $3.22 Trillion.
Thanks to this strong rally, the global crypto market capitalization has reached a new high of $3.22 trillion. This shows how much money is now flowing into digital assets. With Bitcoin alone worth over $1.94 trillion in market cap, experts expect the crypto market to witness fresh all-time highs in the coming months.
Should You Invest Now?
Crypto markets are highly volatile and can swing both ways very quickly. However, if you plan to enter now, experts advise caution and research. Investing in crypto should be done with proper understanding and always with money; you can afford to risk.
If you’re new to crypto, starting with smaller investments and learning how the market behaves is better. Also, always use verified and secure platforms to buy and store cryptocurrencies.
Disclaimer:
Cryptocurrency investment is subject to market risk. Prices are highly volatile. Please consult a financial advisor before investing.
Source: TV9 Hindi, CoinMarket
