The crypto market sentiment had been going from bad to worse lately. Announcements of projects closing were no longer uncommon. Several games and companies announced closures, tokens and cryptocurrencies were plummeting... The scenario showed no sign of improvement.
A few days ago, a surprise impacted the entire market. Bitcoin, which had been hovering between $60,000 and $65,000, began to rise steadily. This gave a great boost to the entire market, and everyone's pessimism quickly subsided.
After passing through the 65K resistance, Bitcoin didn't stop or even reverse; it passed through 70k, 75k, and then reached 80k again. Now, instead of trading in the 60-65k band, it's trading between 75-80k.
The market is made of cycles, but I believe many weren't expecting such a rapid turnaround. It's as if a switch was flipped; perhaps one explanation is the global monetary instability and high spending, which makes BTC a safe haven option against that.
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Impacts of the Recent Bitcoin Surge!
It's something already known, but it's worth remembering. When the price of Bitcoin starts to rise, the entire crypto market is positively impacted, as if it opens the door for liquidity to enter, and when it enters, everything else benefits.
The main indicator of this is the Crypto Market Cap, which had been trading around $2.3T and with the rise in Bitcoin, reached more than $2.7T. We are talking about a value generation of $0.4T, something surreal.
One of the sectors that ends up receiving a portion of this liquidity is DeFi, because when it starts to appreciate in value, some users use this moment to realize their profit, so this buying and selling activity ends up generating fees for DeFi.
Furthermore, the DeFi that receive this liquidity are the bridges to several other projects such as Crypto Games, which have tokens. In this moment of excitement, people start looking for more projects, and with that, the Altcoins of various projects end up rising as well.
In a few days, the whole scenario went from stagnation to a positive moment. However, it's important to be aware that just as the market can rise without warning, it can also fall without warning. The price of Bitcoin serves as both a multiplier and a divisor for various crypto projects and games.
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