Bitcoin price moves above $110,000 for the first time this month

The crypto market rally continued this week, with Bitcoin price moving above $110,000 for the first time this month.

The crypto market rally continued this week, with Bitcoin price moving above $110,000 for the first time this month. Ethereum surged to $2,800, while the total market capitalization jumped to over $3.45 trillion.

Some of the best-performing cryptocurrencies are Uniswap (UNI), SPX6900 (SPX), Fartcoin (FARTCOIN), Arbitrum (ARB), AAVE (AAVE), and Sky (SKY), which have jumped by double digits this year.

Here are three main reasons why the cryptocurrency market rally is occurring.

Firstly, there are indications that investors are purchasing Bitcoin and other cryptocurrency assets this year. Spot Bitcoin ETFs have accumulated over $131 billion worth of assets, while Ethereum ETFs have had inflows for four consecutive weeks.

Companies like Strategy, MetaPlanet, KUHL, TwentyOne, Trump Media, and GameStop are also buying Bitcoin. As a result, the Bitcoin supply on exchanges has plunged to the lowest point since 2017.

Rising Bitcoin demand and falling supply are leading to higher prices. In a recent note, Bitwise stated that, while 95% of Bitcoin has been mined, 95% of the population does not own Bitcoin yet. He believes that the coin will end the year at $250,000.

Secondly, Bitcoin has formed a cup and handle pattern on the daily chart, which will likely lead to a higher price. Such a move is likely to lead to a broader crypto market rally, as altcoins often track the performance of Bitcoin.

Thirdly, the crypto market rally is happening as traders watch the ongoing talks between the U.S. and China in London. These talks have entered the third day, and analysts are optimistic about progress being made. Such progress will be beneficial for Bitcoin and other altcoins, as it will reduce market volatility.

Furthermore, these coins are experiencing a surge due to the increased regulatory clarity in the United States. The U.S. Senate is considering the GENIUS Act, which will regulate crypto prices. On Monday, the SEC hosted a roundtable focused on decentralized finance (DeFi).

Paul Atkins, the SEC Chair, has expressed his support for the industry and self-custody. He is expected to approve multiple ETFs later this year, which will result in increased inflows.