The cryptocurrency market exceeds a $1 trillion with Bitcoin and Ethereum on the rise

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The cryptocurrency market is finally on the rise. The price of Bitcoin exceeded $20,000 and Ethereum rose above $1,500 for the first time since the transition to POS (proof-of-stake). Crypto market capitalization has surpassed a trillion dollars.

Bitcoin rose by 5% and the second largest cryptocurrency Ethereum rose by as much as 12%. At the time of writing, the price of Bitcoin is $20,587.28 and Ethereum is $1,546.09. Apart from these two leading cryptocurrencies, some notable altcoins are also on the rise, including Solana which is up 12% and is now at $32.

Cardano is up 14 percent to $0.41, and Polkadot is up nearly 11 percent to $6.50. Compared to its November 2021 high of $4,600, ETH is now down more than 67% overall. Although some analysts predict that ETH will break the psychological barrier of $2000 again before the end of this year, the cryptocurrency's volatility may make it difficult to accurately determine such price predictions.

What caused the rise of cryptocurrencies?

Analysts point to macroeconomic trends and the stock market, which is also rising as more major companies report earnings. Edward Moya, senior market analyst at OANDA, also hopes the US central bank will soon scale back its aggressive rate hike plan.

“Both Bitcoin and Ethereum are gaining momentum as Wall Street musters up a few strong sessions,” Moya wrote in emailed comments to Decrypt. “The economy is showing further signs of weakening and that is helping investors grow confident that the Fed will be in a better position to downshift their tightening pace after next week’s FOMC meeting”.

If interest rates start to fall later this year, some analysts believe we could see accelerated growth in cryptocurrencies in 2023. The economy has undoubtedly slowed in certain key areas, and since the Fed was late to react to the initial rise in inflation, it is possible that prices have fallen more than the data suggests.

Given the current situation, Bitcoin, Ethereum and Cardano could be among the best cryptocurrencies when the market turns bullish again.