It’s been a heady Friday morning for the crypto market.
Bitcoin (BTC) experienced a 2.4% gain in the past 24 hours, pushing its price above $27,000.
Ethereum (ETH) also saw a 3.3% increase, reclaiming support above $1,650.
A Bitfinex analyst told Decrypt that several factors contributed to this bullish price spike, including news of the Ethereum futures ETF, a 2% rise in the S&P 500 index, and approximately $80 million in short liquidations within the last 24 hours.
On Thursday, VanEck announced the upcoming launch of an Ethereum futures ETF, fueling bullish sentiments in the market.
The U.S. stock market has also flipped green, “giving hope for a market bottom” after a slump since mid-September, Bitfinex analysts told Decrypt.
Moreover, weakness in the dollar’s value may have also added to the bullish sentiments.
The dollar index (DXY) against other global reserve currencies fell for a second consecutive day, losing 1.13% from its yearly peak of 106.8 points.
The dollar maintained an inverse correlation to the stock and crypto market last year when the U.S. central bank started raising benchmark interest rates.
The liquidation of short orders in the futures market, worth around $80 million, per CoinGlass data, also added to the buying pressure as Bitcoin and Ethereum led the liquidations, according to the Bitfinex analyst.
The rest of the crypto market took cues from the rise in Bitcoin and Ethereum, with across-the-board bullish gains.
The total crypto market cap surged 2.2% since yesterday, adding nearly $25 billion, per CoinGecko data.
Among the top cryptocurrencies by market cap, Sui Network (SUI) and PepeCoin (PEPE) led the market with double-digit gains of 12.6% and 10.8%, respectively.
ApeCoin (APE), Thorchain (RUNE), and Arbitrum (ARB) followed the winners with between 6 to 8% overnight gains.