As the entire crypto market surged on Sunday, the price of Bitcoin and Ethereum skyrocketed and pushed over recent price limits. According to CoinMarketCap, Bitcoin has risen more than 5% in the last 24 hours to $47,020, and Ethereum has risen 5% to $3,292. Polkadot (DOT) is up 7% in the last 24 hours, Dogecoin (DOGE) is up 6%, Solana (SOL) is up 5%, Avalanche (AVAX) is up 4%, XRP is up 3%, and Cardano (ADA) is up 3%.
It’s unclear what sparked the rebound, but it’s likely a combination of short- and long-term causes, such as crypto news and larger market trends.
The S&P 500, for example, has been rising for a week, and Bitcoin’s correlation with stocks is at a 17-month high. Do Kwon, the architect of the Terra (LUNA) system, has stated in a Twitter Space that he intends to buy billions of dollars in Bitcoin and store it in a reserve to back the stablecoin TerraUSD (UST). The official Bitcoin wallet address of the Luna Foundation now owns over $1.1 billion, and Kwon intends to amass up to $10 billion in BTC.
According to Glassnode, Bitcoin exchange balances are at their lowest in more than three years, indicating greater demand and interest in transferring Bitcoin off exchanges to cold storage solutions such as hardware wallets.