Crypto Market Value Soars Above $3 Trillion as Bitcoin Leads Rally

Crypto assets have regained over $3 trillion in market value after a surge led by Bitcoin's price rally, but traders are increasingly taking on risk with leveraged bets.

The price of Bitcoin surged nearly 8% to its highest level since late January at $87,381 before retreating to as low as $85,093 on Tuesday. The market has added over $740 billion in value since the US Treasury announced an increase in buyback of long-dated bonds last month.

Traders are taking on increasing leverage with open interest in perpetual futures across tokens climbing to nearly $160 billion, the highest since late October 2022. Analysts warn that this could lead to rapid price swings if short positions continue to be liquidated and new leveraged positions enter the market.