The crypto market capitalization added nearly $64 billion on Wednesday, April 22, amid renewed institutional demand.
The total cryptocurrency market cap surged by over 2% in the past 24 hours, reaching $2.7 trillion at press time, according to metrics from CoinGecko. The 24-hour average crypto trading volume jumped by roughly $9.74 billion to hover around $112.2 billion at the time of publication.
Bitcoin (BTC) price had gained 2.3% over the past 24 hours, thereby trading at approximately $78,077 at the time of reporting. The top ten altcoins that performed best today were Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). Meanwhile, XRP price has increased by nearly 1% to trade at $1.45, hence outshining the rest of the top ten altcoins over the past seven days.
Top reasons why the crypto market gained today
One of the main factors behind the cryptocurrency industry’s upward trend today was easing geopolitical tensions, which boosted macro sentiment. Specifically, on April 21, President Donald Trump announced that the ceasefire agreement with Iran had been extended indefinitely.
In response, crypto traders turned increasingly optimistic, with CoinMarketCap’s Fear and Greed Index rising from 57/100 on Tuesday to 61/100 at press time. The growing bullish sentiment was further supported by a short squeeze – a rally that occurs when rising prices force sellers to turn bullish. Moreover, short traders accounted for $286 million of the $418 million liquidated in the past 24 hours, as per data from CoinGlass.
The cryptocurrency market also experienced bullish sentiment catalyzed by renewed demand, especially from institutional investors. For instance, BlackRock’s iShares Bitcoin Trust (IBIT) has recorded 10 consecutive days of inflows, thereby accumulating more than $1.6 billion, as Finbold reported.
Additionally, at the beginning of this week, Strategy Inc. (MSTR) purchased more than $2.5 billion in Bitcoin, thereby becoming the largest institutional holder, as Finbold noted. The spot XRP exchange-traded funds (ETFs) have also recorded a new wave of inflows in the recent past, as Finbold pointed out.
