Crypto Market Skyrockets $430 Billion in Six Days on US Support Hopes

The global cryptocurrency market has seen a massive surge in value over the past six days, adding more than $430 billion to its total capitalization. This significant increase brings the market's value to around $2.68 trillion, up about 19% from roughly $2.25 trillion just a week earlier.

The rally was led by major cryptocurrencies such as Bitcoin, Ether, Solana, and XRP, which saw significant price gains. Bitcoin climbed back above $80,000 for the first time since May, while Ether rose to $2,481, Solana advanced to $96.82, and XRP surged to $1.48.

Experts point to expectations of US liquidity support and moves to improve the regulatory framework as key drivers behind the rally. The US Treasury's decision to expand buybacks of long-term Treasuries has raised hopes that pressure from rising market interest rates could ease. Additionally, President Donald Trump's call for Congress to advance cryptocurrency legislation has boosted investor sentiment.

However, QCP Capital notes that falling derivatives open interest suggests the rally was not solely driven by new buying, but also by forced liquidations of short positions. This implies that the market's increase in value may not necessarily mean a corresponding influx of fresh capital.