Bitcoin Nears USD 70,000; Altcoins Also Rally: What's Driving Crypto Prices?

Cryptocurrency prices surged sharply over the past 24 hours, with major tokens posting strong gains. Bitcoin climbed above USD 69,000, while Ethereum led the rally among major altcoins with an almost 18 per cent jump. Other large-cap cryptocurrencies, including XRP, Solana and BNB, also traded higher.

Major Cryptocurrencies Extend Gains as Bitcoin, Ethereum Rally

Bitcoin was trading at USD 69,608.40, up 8.24 per cent in the last 24 hours and up 8.98 per cent over the past week. Ethereum stood at USD 2,253.57, up 17.91 per cent in the last 24 hours and up 18.82 per cent over the past week. XRP was at USD 1.10, up 10.74 per cent in the last 24 hours and up 9.53 per cent over the past week.

BNB was trading at USD 626.94, up 4.29 per cent in the last 24 hours and up 2.15 per cent over the past week. Solana stood at USD 84.91, up 10.40 per cent in the last 24 hours and up 11.39 per cent over the past week. Cardano was at USD 0.1840, up 5.29 per cent in the last 24 hours and up 0.16 per cent over the past week.

What Is Driving The Crypto Market Rally?

The latest rally has been supported by a combination of macroeconomic developments, improved regulatory sentiment and heavy short liquidations. Balaji Srihari, Vice President-Business, India, said, “Bitcoin’s move toward USD 70,000 is being supported by improving macro liquidity, a more constructive US regulatory backdrop and heavy short liquidations. The US Treasury announced plans to double certain long-duration Treasury buybacks, helping ease bond yields.

The move has also been supported by fresh investor demand. Prateek Gupta, Head of Business, Mudrex, said, “The rally is not driven only by short-term trading activity, with US spot Bitcoin ETFs attracting USD 486 million over two days.”

Gupta further said altcoins are benefiting from the same macro tailwinds supporting Bitcoin, along with asset-specific factors. Ethereum has seen continued accumulation by BitMine, while progress around the CLARITY Act and the SEC’s proposed crypto-asset exemption could reduce regulatory uncertainty for XRP and Solana.

Can Bitcoin Sustain Its Rally?

The rally’s sustainability will depend on whether Bitcoin can maintain its recent momentum. Vikram Subburaj, CEO, Giottus.com, said, “Continued ETF demand and a sustained move beyond USD 70,000 could carry Bitcoin towards USD 75,800-USD 76,000.” He added that a fall below USD 68,500 would suggest that the rally owed more to short covering and lower yields than to a lasting recovery.

Looking ahead, Balaji Srihari, Vice President-Business, India, said, “The medium-term setup has improved significantly, but the market is vulnerable to a short-term consolidation.” He added that BTC still needs to establish sustained support around USD 68,000-USD 70,000.