Ethereum price rallied over 4% while DOGE value recorded double-digit gains.
The broader crypto market stayed in the green today, as recent news indicated a sustained investors’ interest in the digital assets.
The surge in crypto prices helped gains of over 2.2% in the overall market cap and sent it to $4.09 trillion while writing.
Meanwhile, the crypto prices fear and greed index stayed at 53, indicating a neutral sentiment in the market.
Notably, the current sentiment, despite the robust rally, suggests that the broader market may continue to move to the north.
However, the average crypto Relative Strength Index (RSI) paints a gloomy picture. The RSI current stayed at 65, indicating an overbought condition, which raises the risk of a short-term pullback ahead.
In crypto prices today, BTC price has surged more than 1% in the last 24 hours and soared past the $116k mark.
The crypto has moved between $114,794 and $116,769 in the last 24 hours, while its one-day volume fell 12% to $47 billion.
In the altcoins segment, Ethereum price rallied over 4.5% to $4,7171, and its trading volume rose 7% to $43 billion.
Simultaneously, XRP price rallied 4% to $3.16, while Solana and Cardano prices jumped 1.6% and 6%, respectively. BNB price also rallied 3% amid a broader crypto market rally.
Meanwhile, the meme coins sector also made headlines in the crypto news column amid a broader crypto market rally.
The leading player in the space, Dogecoin price jumped 13% to $0.2933 with its trading volume jumping 60% to $6.5 billion.
On the other hand, Shiba Inu price rose 10% in the last 24 hours to $0.00001454 while the leading frog-themed meme coin PEPE Coin added 16% in the same timeframe.
The recent crypto news, the surge in prices has left investors wondering about the potential reason behind the current rally.
Although there could be a flurry of factors that have bolstered the crypto market confidence recently, here we explore some of the key reasons behind the surge.
It appears that the soaring institutional interest in Bitcoin and Ethereum has boosted the investors’ sentiment.
The US Spot Ethereum ETF has recorded an inflow of $734.3 million from September 9, with an outflow of $96.7 million on September 8, Farside Investors data showed.
On September 12, it recorded the highest inflow this week of $405.5 million. Fidelity’s FETH provided the highest boost with $168.2 million influx, followed by BlackRock ETHA’s $165.6 million fund flow.
Meanwhile, the US Spot Bitcoin ETF has also continued to move in tandem, reflecting the renewed institutional interest in the crypto prices. This week, the Bitcoin ETF has recorded a robust influx of $2.32 billion.
On September 12, Fidelity’s FBTC provided the highest boost by injecting $315.2 million into the investment instrument alone. The inflow from BlackRock’s IBIT on Friday was recorded at $264.7 million.
The anticipation over a potential Fed rate cut has further fueled crypto market confidence. Despite the hotter-than-anticipated US CPI inflation data, the market is betting on a potential Fed rate cut announcement next week.
Meanwhile, the investors await the US FOMC interest-rate cut decision on September 17. According to the CME FedWatch Tool, the odds of a 25 bps rate cut now sit at 93%.
Usually, the lower policy rates help boost liquidity in the market. This, in turn, helps gain in the riskier assets like the crypto prices.
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