- Global crypto markets continue record breaking run.
- Surges in Bitcoin and Ethereum prices underpinned the market surge.
- Futures markets are also up after Joe Biden's stimulus package is approved.
The weekend saw crypto’s global market cap continue to surge to new highs as a raft of new investors, and investment tools gear up to start offering more ways of dabbling in digital money.
In just three days, markets added $500 million to their coffers to a total market cap of $1.23 trillion, according to data company Nomics.
The overwhelming majority of that growth came from Bitcoin, which flirted with $40,000 before pulling back to the $38,000s. At the time of writing Bitcoin is down 2% over the last 24 hours, but is still within touching distance of January 8’s all time high of $40,771. Side note: different exchanges will have recorded different prices, and therefore different reporters report different numbers but the overall trend is: Bitcoin go up.
Ethereum meanwhile continued its price rally north of $1,500 over the weekend. The currency has spent six days above that mark despite a flash crash that sank the price by 10% over the weekend.
This week could bring increased volatility to Eth’s price as the Chicago Mercantile Exchange is due to launch its ETH futures contracts. These contracts will allow institutional investors to speculate on the price of the coin, in both long and short positions.
For reference, when the CME first launched its Bitcoin futures contracts on 2017, Bitcoin surged to record highs. Speaking of Bitcoin futures, the amount locked in contracts betting on the future price of Bitcoin hit a record high of $14 billion over the weekend.
However, with Chinese New Year fast approaching, many are expecting increased price fluctuations as Chinese citizens have traditionally sold their Bitcoin holdings around this time leading to a drop in price. But there are projects that seem impervious to China’s festive celebrations.
Dogecoin’s rollercoaster ride continued across the weekend as more celebrities dived into pump the coin to their sizeable followings.
Joining the likes of Elon Musk and former KISS frontman Gene Simmons was Snoop Dogg.
The rapper photoshopped one of his album covers to include the Shiba Inu mascot, which was followed by Elon Musk photoshopping himself, Snoop and Gene onto an image from the Lion King.
So … it’s finally come to this … pic.twitter.com/Gf0Rg2QOaF
— Elon Musk (@elonmusk) February 7, 2021
This flurry of activity has pushed Doge’s market cap into the top 10, as it recorded an 18% gain in the last 24 hours and an 73% surge in trading volume.
The project’s market cap is now hovering around $10 billion, but if the past few weeks are anything to go by, it’s unlikely to last.
Futures Markets Surge as Congress Fast Tracks Biden Stimulus
While the markets were closed for the weekend, Dow Jones, S&P and Nasdaq futures all surged on the news that Joe Biden’s $1.9 trillion stimulus package had passed the final hurdle in the House. It’s due to become legislation later this month, fuelling bullish market sentiment around the recovery of the US economy.
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