The total cryptocurrency market capitalization added around 3.5 percent to about $1.79 trillion in the past 24 hours. After teasing possible entrenched market correction, Bitcoin price closed Wednesday on a bullish note, thus carrying the entire altcoin industry with it.

Notably, Bitcoin’s weekly Relative Strength Index (RSI) rallied above the 70 level, thus indicating that the bulls are in control. Nevertheless, the crypto market needs to consistently close in the coming days on a bullish note to invalidate the recent bearish sentiments.

Furthermore, the sudden crypto upsurge in the past 24 hours did not trap most traders as the total liquidations were about $107 million, with more than 80 percent consisting of short traders. Solana (SOL), Celestia (TIA), and Cardano (ADA) led the altcoin market in gains during the past 24 hours.

Top Reasons Why Crypto Gained Bullish Traction

High Crypto to Stock Markets Correlation

Assuming that the crypto market still holds its long-term correlation with the top-tier stock indexes like the NASDAQ, and S&P500, then the digital asset industry should play the catch-up game in the near term. Notably, the correlation between the stock indexes and the crypto market has been strong in the past few months until the end of January when the S&P500 broke out to a new all-time high. 

Renewed Altcoin Demand via Ether Spot ETF

HERE WE GO AGAIN: ARK/21Shares has just filed an amended S-1 for their spot Ether ETF, looks like they updated to be only cash creations and some other things that bring it in line w the recently approved spot btc etf prospectus..

— Eric Balchunas (@EricBalchunas) February 7, 2024

With the United States Securities and Exchange Commission (SEC) having a few months to the final deadline on the decision regarding the spot Ethereum exchange-traded funds (ETFs), speculation on inevitable approval has spiked. Furthermore, Ethereum’s spot ETF debate enjoys a similar status as the spot Bitcoin ETFs, thus raising the odds of imminent approval. 

Also Read: Bitcoin Price Surge Above $44K; What Next For BTC Price?

General Bullish Sentiment 

The Bitcoin-led crypto bullish outlook is getting stronger by the day amid the anticipated pre-halving rally. The high demand for digital assets from retail traders and institutional investors has helped push underlying prices higher recently. 

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Zameer Attar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.