Tremendous Uplift in Crypto Market: Bitcoin close to ₹88 lakh, Ether crossed ₹2.42 lakh with 8% surge
Equities and Gold fell, but Crypto showed strength; AAVE Token went up 25%
The crypto world has witnessed another tremendous day where Bitcoin and Ether made their investors happy. Bitcoin has reached close to ₹88 lakh (approx. $106,000), while Ether has crossed ₹2.42 lakh (approx. $2,900) with a surge of 8%. All of this is happening as traditional markets, such as equities and gold, have fallen following Moody’s U.S. credit downgrade.
Moody’s Credit Downgrade and Market Reaction
Moody’s downgraded America’s credit outlook, citing persistent fiscal deficit and political gridlock. Following this news, equity markets saw a decline and gold is down nearly 7% from its May high. But the crypto market reacted in the opposite way — while other markets distanced themselves from risk, Bitcoin and Ether showed strength.
QCP Capital said in a Telegram broadcast, “Bitcoin’s weekend rally, while there was a risk-off sentiment in equities, shows that BTC has become a legitimate store of value.” He said that consistent inflows in spot bitcoin ETFs and institutional demand are the major reasons behind this rally.
Bitcoin touched $107K, then retraced slightly
Bitcoin touched $107,000 in a short term rally on Sunday night, but later retraced slightly. It is still trading around $106,000, which is a pretty solid growth in the last few days.
Ether’s tremendous move: ₹2.42 Lakh Par
Ether has also shown tremendous momentum during this period. After last week’s breakout, Ether has now crossed the level of ₹2.42 lakh. This rally is driven by renewed interest of Ethereum staking flows and positive sentiment after the Pectra upgrade. Although, no new major announcement came on Monday, but still the price maintained momentum.
Altcoins also in motion: SOL, XRP, DOGE all in green
Not just BTC and ETH, but Solana (SOL), Ripple (XRP), BNB and Dogecoin (DOGE) are also trading in the green zone. All these tokens have seen a gain of 2-4%. The CoinDesk 20 Index (CD20) has also shown a rise of almost 2% in the last 24 hours.
AAVE Token’s Explosive Jump: 25% Rise is Speculative
Another token that caught the attention of investors was AAVE’s AAVE token. It showed a jump of more than 25% in the last 24 hours. But this rally has come without any official announcement or protocol update, which shows that speculative buying may play a big role in this rally. However, AAVE is still 60% below its 2021 highs.
Bitcoin vs Gold: New trend emerges
One interesting thing that traders are noticing is the breaking of the correlation between Bitcoin and gold. Earlier both used to go up or down together, but now BTC is going up despite the fall of gold.
Augustine Fan of SignalPlus said, “BTC ETFs have seen a rise, while inflows in gold ETFs have fallen. This pattern is also seen in BTC and gold futures on CME.”
He further said, “We should expect that such micro-correlation breaks and more relative value trading opportunities will come to the fore.”
When the world’s financial markets are facing uncertainty, the crypto market has shown its resilience. The strong performance of Bitcoin and Ether suggests that investors are accepting these digital assets as a long-term hedge and alternative store of value. It will be interesting to see in the coming days whether the crypto market is able to maintain this momentum or not.
Crypto bulls are in full charge now, and if this momentum continues, new highs are not far away.