Why crypto market is going up – Is FOMO the real catalyst behind the rise?

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The crypto market is going up due to retail FOMO and short liquidations. The US political landscape is also driving gains.

Bitcoin The gains have been widespread as the total market capitalization has pushed past the $2.7 trillion mark. In just one week, total crypto market capitalization has surged by more than $500 billion.Cryptocurrency traders, especially short-term holders, are known to be reactive. Unlike long-term holders who often focus on fundamentals, short-term holders react to price volatility and hype., which had a value of 76 at press time, an indication that the market was in “extreme greed”.

If Scott wins the vote, it could pave the way for pro-crypto bills. This could drive more gains across the market.The recent volatility across the crypto market has led to a surge in liquidations. Data from Coinglass showed that in the past week, short liquidations have spiked and continued to rise as in the last 24 hours, $283 million worth of shorts were liquidated.When short sellers are liquidated, they are forced to buy to close their positions.

 

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