The crypto market rally resumed on Monday morning, with Bitcoin crossing the important resistance level at $80,000 for the first time in three months. Dash price soared by over 30%, while Siren, Zcash, Ondo, and World Liberty Financial rose by over 7% in the same period.
Crypto market rally triggered by US-Iran optimism
The first main reason why the crypto market rally is happening today is that President Donald Trump has sparked optimism by announcing that the US was having talks with the Iranians. According to Axios, the US has responded to the Iranians’ 14-point proposal that Trump said was not good enough.
Trump also announced that the US would start escorting ships through the Strait of Hormuz starting from today. Such a move, if successful, would help ease the ongoing pressure and lower oil prices
The statement explains why the stock market also rallied, with top global indices like the Dow Jones, Nikkei 225, and Hang Seng continuing their recent rallies.
Still, there is a risk that the initiatives will not work. For example, the US helping ships sail through the Strait of Hormuz will not be easy as Iran has the capacity to cause substantial damage. Also, many ships will be skeptical because of the elevated insurance costs.
Additionally, the two sides are too far apart, meaning that a potential deal may not work out well in the near term.
Rising Bitcoin ETF Inflows
The crypto market is going up as investors react to the ongoing Bitcoin ETF Inflows, a sign that investors are accumulating the token. Data shows that spot Bitcoin ETFs added over $2 billion in assets last month.
It was the second consecutive month of gains, a trend that has continued this month as the funds added over $629 million in assets on Friday last week
Spot Ethereum ETFs added $101 million on Friday after adding $355 million in April this year. Similarly, XRP ETFs added $85 million in assets last month, the best performance of the year.
Rising ETF inflows signals that the market is doing well as Institutional investors buy.
GameStop’s eBay buyout
The crypto market rally is also happening as investors embrace a risk-on sentiment after GameStop’s eBay buyout. In a statement, the Ryan Cohen, the CEO, said that the company would make a $56 billion bid for eBay.
This is notable as eBay is the one that should be buying GameStop because of the size differential..GameStop has a market capitalization of $12 billion against eBay’s $46 billion. As a result, it will need to borrow heavily to fund the acquisition.
The acquisition is important for the crypto industry because GameStop is a Bitcoin Treasury company. It is also a major player in the meme stock industry.
Consensus event is happening this week
The other potential reason behind the crypto market rally is that the Consensus event is happening this week in Miami. Consensus is a major event that brings together some of the biggest players in the crypto industry, including policymakers from the SEC and CFTC.
It also brings top officials from popular companies like Ripple, Binance, Coinbase, and Kraken. In the past, news coming from this event used to move the markets, a situation that has added over time.