Major coins, including Bitcoin (CRYPTO: BTC), traded higher Tuesday evening as the global cryptocurrency market cap rose 3.5% to $2.27 trillion.
What Happened: The apex coin rose 4.2% higher over 24 hours to $48,862.20. Over a seven-day trailing period, BTC has risen 1.25%.
Ethereum (CRYPTO: ETH) was up 1.9% to $4,016.72 over 24 hours. For the week, the coin is up 3.8%.
Meme cryptocurrency Dogecoin (CRYPTO: DOGE) rose 2.2% to $0.17 over 24 hours. Over the last seven days, it has fallen 7.75%.
DOGE-rival Shiba Inu (SHIB) was up 4.8% to $0.00003 over 24 hours. It has declined nearly 2.5% over the last seven days.
The top three gainers over 24 hours were Loopring (LRC), IOTA (MIOTA), and Curve DAO Token (CRV), according to CoinMarketCap data.
LRC soared18.3% to $2.37, MIOTA rose 18.25% to $1.27, and CRV was up 15.5% to $4.82 in the period.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: Cryptocurrencies moved higher with the stocks on Tuesday as the appetite for risk assets surged. The S&P 500 closed 1.78% higher at 4,649.23, while the Nasdaq ended the day 2.4% higher at 15,341.09.
Edward Moya, a senior market analyst with OANDA, said cryptocurrencies rebounded after Fitch Ratings pointed out that improved regulation could “moderate stablecoin credit risks.”
“Stablecoins remain vulnerable to US regulation, but it seems the cryptoverse will most likely embrace regulatory clarity,” wrote the analyst, in an emailed note. On Bitcoin, Moya said many investors believe the bottom is in place.
“Trading conditions are nowhere near full participation, so unless further catalysts appear, Bitcoin should still remain rangebound.”
Even though Bitcoin is trading nearly 30% below its all-time high of $68,789.63, the weakness has not deterred strong hands from accumulation, according to Glassnode.
The on-chain analysis firm pointed to Illiquid Supply — which is the amount of Bitcoin held by on-chain entities with more than or equal to 75% inflows in their ledger history — to make its point.
These Illiquid entities sold off in May along with the bulk of the market, but since then they have stepped up the hoarding of coins and are currently taking possession of coins at a rate of 3-4x daily coin issuance, as per Glassnode.
BTC — Illiquid Supply Vs Issuance, Courtesy Glassnode
“Put another way, strong handed HODLers are absorbing supply at more than triple the rate of new coins being mined each day,” wrote Glassnode.
Meanwhile, despite the attraction of lower transaction fees on alternative networks, Ethereum still continues to dominate the non fungible token or NFT space in terms of volume, as per a Delphi Digital note.
NFT Volume On Select Chains — Courtesy Delphi Digital
Data shared by the cryptocurrency research company shows that while NFT volume remains vibrant, other chains have seen a slowdown.