Crypto Market Value Climbs Back Above $2 Trillion in Broad Rally

Following a widespread cryptocurrency surge that saw the second-biggest token, Ether, return to its level before the collapse of the TerraUSD stablecoin nearly two years ago, Bitcoin remained around $52,000.

For the first time since April 2022, the market valuation of digital assets surpassed $2 trillion, thanks in large part to Bitcoin's over 25% year-to-date increase, according to statistics from CoinGecko. As of 9:59 a.m. New York time on Thursday, both Bitcoin and Ether were up over 2%. At one point, Ether was trading at $2,852.

The launch of Bitcoin-specific exchange-traded funds in the United States is one example of the sector-specific factors that have been bolstering the cryptocurrency. Since going public on January 11, the group of products from companies including BlackRock Inc

and Fidelity Investments has garnered a total of $3.9 billion. At the same time, many see the impending so-called Bitcoin halving in April as a historical precedent-based support for prices as it will reduce the supply of the largest digital asset.

The latest price surge is probably due to large net inflows into US spot Bitcoin ETFs, according to Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC.

After the devastating TerraUSD meltdown in early May 2022, Ether has lagged behind Bitcoin in recovering to its levels before the crash. This is a psychologically crucial milestone. In anticipation of his extradition to either his home country of South Korea or the United States, where he is wanted on fraud charges, Do Kwon, developer of TerraUSD, is now being held in Montenegro.

After suffering a digital asset crash in 2022, Bitcoin has recovered and quadrupled in value since the beginning of the year. Prices exceeding the record of over $69,000 reached in November 2021 are being targeted by traders, according to options market wagers.

Author Noelle Acheson of the Crypto Is Macro Now newsletter said that the narratives that support Bitcoin "help the whole crypto market, as correlations between BTC and other assets are high.".

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