Crypto Market Booms: Analyst Reveals Top Reasons for Surge

• Crypto market cap rose 1.4%, lead by Bitcoin and Ethereum which increased 2%.
• The US Dollar Index saw a sudden drop in the past 24 hours, which boosted the crypto market.
• Bob Baxley, Chief Technology Officer of DeFi infrastructure platform Maverick Protocol warns that the trillion dollars flowing back into the general account of U.S Treasury could suck liquidity out of the market.

Crypto Market Up by 1.4%

The total crypto market cap edged 1.4 percent higher on Friday to stand around $1.19 trillion. Bitcoin and Ethereum lead the rest of the altcoin market in gains, up approximately 2 percent to trade around $27,182, and $1,894 respectively during the early Asian market on Friday.

US Dollar Index Reversal

The sudden price reversal in the crypto market coincided with a significant drop in the United States Dollar Index, a measure of the value of the United States dollar relative to a basket of foreign currencies, in the past 24 hours. The U.S Dollar Index suddenly reversed on Thursday after being on a rising trajectory in the past three weeks. Notably, a weakening United States dollar is an added advantage to Bitcoin and rest of digital assets.

Analyst Take On Crypto Market Outlook

Bob Baxley, Chief Technology Officer of DeFi infrastructure platform Maverick Protocol noted that investors should keep an eye on U.S treasury’s general account as it has shrunk significantly in recent months and liquidity could be sucked out from crypto markets if this continues to persist due to funds reloading back into its general account .This is similar to what happened in 2019 where Federal Reserve had to step-in for emergency liquidity infusion .

Coinbase Introduces Futures For Institutional Investors

Recently Coinbase ,a cryptocurrency exchange giant announced introduction of futures trading for institutional investors on derivatives exchange .It offers exposure to bitcoin and ether without having access or owning underlying coins thus allowing customers hedge their position more effectively .

Ripple vs SEC Battle

Ripple is facing legal battle with Securities Exchange Commission over allegation related to XRP tokens being classified as security .SEC’s ongoing investigation has already affected other entities like Tetragon Financial Group Limited who have filed lawsuit against Ripple Labs seeking repurchase of its investment citing disruption caused by SEC’s action .