Why crypto is going up today: Reasons why Bitcoin and altcoins are rallying

The crypto market is in a strong bull run today, August 14, with Bitcoin and Ethereum sitting at their all-time high. The crypto market is now valued at over $4.19 trillion, a trend that may continue in the coming weeks. Here are the top reasons why crypto is going up.

Crypto going up because of the Federal Reserve’s cut hopes

The main reason why Bitcoin and altcoins are rallying is the rising hope that the Federal Reserve will start to cut interest rates in the September meeting.

These hopes soared after the US published the latest consumer price index (CPI) and nonfarm payrolls (NFP) data.

The NFP data showed that the economy created just 73,000 jobs, while the unemployment rate jumped to 4.2%. The report also revised the number of jobs created in May and June to reflect an average of 35,000 jobs in those months.

This week, a report showed that the headline consumer price index (CPI) rose 2.7% in July, aligning with expectations. The core CPI, which excludes the volatile food and energy prices, rose to 3.1%, moving further away from the 2% target.

Therefore, all data points to a potential cut in September, with the CME data showing a 99% chance. However, some Federal Reserve officials like Austan Goolsbee and Raphael Bostic are calling for patience, warning that cuts would boost inflation

Crypto rallying ahead of altcoin ETF approvals

The crypto market is also rallying because of the rising hopes that the Securities and Exchange Commission (SEC) will approve multiple altcoin ETF in the fourth quarter.

The agency is reviewing tens of ETF filings on top cryptocurrencies like Bonk, Hedera Hashgraph, Cardano, XRP, Solana, and Litecoin

While not all ETFs will be approved, the hope is that the agency will accept the most important ones, like Solana and XRP. These approvals will boost the crypto market because of the potential inflows from American investors.

Bitcoin and Ethereum ETF inflow

The other reason behind the ongoing crypto market bull run is that top crypto ETFs are attracting vast sums of money from institutional and retail investors. All Bitcoin funds had inflows of $86 million on Wednesday, bringing the total inflows to over $54 billion

Spot Ethereum ETF inflows totaled over $729 million, bringing the total to over $2.25 billion this week. They now have had cumulative inflows to over $12 billion.

Other derivative-based ETFs have continued to do well, with XRP’s XXRP and UXRP having over $462 million and $110 million in assets, respectively

Crypto treasury companies

Additionally, crypto is going up because of the ongoing demand from treasury companies, which are all trying to emulate Strategy, which has now become a $120 billion behemoth

Most top cryptocurrencies now have their treasury companies. For example, Ethereum has companies like SharpLink and BitMine. BitMine is raising over $20 billion to accumulate more Ether coins

Tron Inc, formerly known as SRM International, is raising $1 billion to accumulate more ETH tokens. Other companies like BNB Network Company and Windtree are buying BNB token.

Rising greed in the market

The crypto market is rallying as investors embrace a risk-on sentiment. Data shows that the Crypto Fear and Greed Index has moved into the greed zone, at 68

Historically, crypto prices do well when traders are greedy as this leads to the Fear of Missing Out (FOMO). Indeed, the 24-hour volume rose by 15% to $250 million.

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