The crypto market, led by Bitcoin (BTC) and Ethereum (ETH), is on the rise. The total crypto market cap edged 2.17% higher on Tuesday, October 21, during the mid-North America session, to hover about $3.83 trillion at press time.
Bitcoin Leads the Crypto Pump
According to Coinpedia’s market data, Bitcoin price gained around 3% to reach a range high of about $113,996 before retracing to trade around $113,542 at press time. Bitcoin’s daily average trading volume gained 48% to hover around $78.4 billion at press time.
Ethereum price led the wider altcoin market in today’s gains. The large-cap altcoin, with a market cap of around $495 billion, rallied over 4% to trade above $4,100 at press time.
Main Reasons Why the Crypto Market is Up Today
High Institutional Demand amid Capital Rotation from Gold and Silver
The demand for crypto assets, led by BTC and ETH, will skyrocket as gold and Silver investors rotate their profits. Notably, Gold and Silver spot prices dropped over 4% on Tuesday after hinting at a possible reversal pattern, which is characterized by double tops in the daily timeframe.
Historically, Bitcoin and the wider crypto market pump after Gold topped out, fueled by capital rotation.
Fed’s Crypto Integration Talks
On Tuesday, Federal Reserve Governor Chris Waller announced the central bank is proposing a new type of limited-access master account dubbed “skinny master account”. Notably, the skinny master account is expected to be given to innovative fintechs and banks led by crypto firms such as Ripple Labs, Kraken, and Anchorage.
Such a move would heavily influence the crypto liquidity and volume in the long term.
Leveraged Short Squeeze Impact
Following the sudden crypto market rebound on Tuesday, more than $537 million was liquidated from leveraged traders. Out of the total crypto liquidations, about $300 million involved short traders, thus fueling the impact of a short squeeze.
The crypto short squeeze happened as the fear and greed index suggested high fear of further capitulation from most traders.
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