Current surge in cryptocurrency market seen today
The crypto market has experienced a remarkable surge in the past 24 hours, with Bitcoin leading the charge. The total market capitalization of the crypto market now stands at over $4.01 trillion, marking a $109 billion increase.
Bitcoin's Bullish Trend
Bitcoin's price has surged above the $116,500 mark, driven by a series of positive factors. Despite remaining stuck around the $120,000 resistance level, the digital currency's next target is $122,000, supported by its correlation with US stock markets.
However, profit-taking remains a risk, and a drop below the support at $117,261 could weaken the short-term bullish trend. If Bitcoin manages to convert the $1.09 level to support, it could potentially run to $1.15.
FARTCOIN's Performance
Among the altcoins, FARTCOIN has been the top performer, with a 23% gain on the day. The cryptocurrency is currently trading at $1.08, testing the key resistance at $1.09. A potential obstacle for FARTCOIN's growth is the 50-day exponential moving average.
Factors Contributing to the Bullish Rally
The recent bullish rally in the crypto market can be attributed to several key factors. These include the Federal Reserve's dovish pivot, institutional inflows and ETFs, a favourable macroeconomic environment, technical indicators and market sentiment, historical patterns and the 4-year cycle, and Donald Trump's pro-crypto policies.
- Federal Reserve's Dovish Pivot: The Federal Reserve's policy pivot in August 2025, marked by a dovish stance, has significantly influenced the market. This shift has led to a reassessment of inflationary risks, resulting in a surge in Bitcoin's price.
- Institutional Inflows and ETFs: Institutional investors, such as BlackRock's involvement with an $80 billion ETF, have contributed to the bullish momentum. The presence of spot Bitcoin ETFs has generated substantial inflows, further fueling the rally.
- Macroeconomic Environment: The overall macroeconomic environment, including potential rate cuts and pro-crypto policies, has supported the rally. Donald Trump's pro-crypto policies have been noted as a factor in Bitcoin's recent gains.
- Technical Indicators and Market Sentiment: Technical indicators, including the validation of support levels and Fibonacci targets, suggest a strong accumulation phase for Bitcoin. Positive market sentiment, as indicated by the Fear & Greed Index, further supports the rally.
- Historical Patterns and the 4-Year Cycle: Bitcoin's 4-year halving cycle has historically triggered bullish trends. The recent halving in 2024, coupled with regulatory clarity and institutional adoption, has heightened expectations for a trend-breaking bull run in 2025.
These factors collectively contribute to the bullish sentiment and price movements in the crypto market.
[1] Source: CoinDesk (https://www.coindesk.com/business/2025/08/13/bitcoin-rises-above-116500-as-federal-reserve-signals-dovish-pivot/) [2] Source: Bloomberg (https://www.bloomberg.com/news/articles/2025-08-13/bitcoin-jumps-as-trump-says-he-s-open-to-crypto-regulation) [3] Source: Cointelegraph (https://cointelegraph.com/news/bitcoin-price-analysis-bullish-momentum-presents-exciting-opportunities-for-savvy-investors) [4] Source: Forbes (https://www.forbes.com/sites/jasonbrett/2025/08/13/bitcoin-price-surges-above-116500-as-institutional-investors-pile-in-amid-federal-reserve-dovish-pivot/?sh=574e52c4575d) [5] Source: Alternative (https://alternative.me/fear-and-greed)
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