The total crypto market cap surged around 2 percent

The total crypto market cap surged around 2 percent in the past 24 hours to hover about $2.92 on Thursday, March 20

The total crypto market cap surged by around 2 percent in the past 24 hours to reach approximately $2.92 trillion on Thursday, during the early London trading session. The 3.2 percent Bitcoin (BTC) price bump influenced the broader altcoin market, including Ethereum (ETH), XRP, and Solana (SOL), among others.

However, following the increased crypto industry volatility, more than $357 million was liquidated from the leveraged market, with the majority affecting short traders.

Major Factors Behind Today’s Crypto Market Bump

Gold Price Rally

For the first time in the history of gold as a store of value for humanity, the precious metal closed above $3k per ounce for three consecutive days. With Bitcoin often regarded as digital gold, a rebound from the crucial support level of around $80k was to be expected.

Meanwhile, the broader altcoin market has shown a positive correlation with Bitcoin, leading to a rally in tandem.

U.S. Tariff Inflation

On Wednesday, Fed Chair Jerome Powell said that President Donald Trump’s tariff measures have already begun to increase inflation. The Fed anticipates inflation to rise slightly to 2.7 percent by the end of 2025, compared to the current level of 2.5 percent. Nonetheless, Jerome highlighted that the economy is still healthy despite the anticipated slow growth.

Following the announcement, major U.S. stock indexes, including the S&P 500, Nasdaq Composite, and the Dow Jones Industrial Average, gained around 1 percent. Given the crypto market’s correlation with the major stock indexes, the broader crypto industry also rallied in response.

Renewed Demand from Whale Investors

The overall demand for crypto assets has gradually increased in recent days, largely driven by Bitcoin. For instance, U.S. spot Bitcoin ETFs have recovered three consecutive days of cash inflows, increasing the chances of the week ending with net cash inflows. On Wednesday, Bitwise’s BITB led the other spot BTC ETF issuers in cash inflow, reporting a net cash inflow of about $12 million.

Meanwhile, the rising activity of whales resulted in a decrease of approximately 2,022 BTCs from centralized exchanges.

Clear Regulatory Outlook

As Coinpedia previously highlighted, the broader crypto market has significantly benefited from the administration change in the United States. During the Trump administration, several crypto litigations were dropped by the U.S. SEC and CFTC.

On Wednesday, Brad Garlinghouse, CEO of Ripple Labs, announced that the U.S. SEC has dropped the appeal of the long-standing lawsuit against XRP sales.