Connect with us

Crypto World

Why is the crypto market going up today? (March 13)

Published

on

Why is the crypto market going up today? (March 13)

The crypto market rose 2.4% to $2.51 trillion on Friday primarily due to a shift in global risk sentiment following signals of potential de-escalation in the Middle East.

Summary

  • Crypto prices rebounded on Friday after crude oil prices retreated following multi-year highs.
  • A wave of short liquidations across leveraged markets and back-to-back inflows into major crypto ETFs also supported the recovery.

Bitcoin (BTC), the leading crypto asset by market cap, rallied nearly 4%, hitting close to the $72,000 mark. Ethereum (ETH) was up 4.3% over the past day, trading at $2,100 when writing. Other major crypto assets, such as BNB (BNB), XRP (XRP), Solana (SOL), and Dogecoin (DOGE), had also posted modest gains on the day.

It should be noted that today’s market rally was a standalone event as it detached from both the U.S. traditional stock indexes and tech stocks. The Dow Jones Industrial Average dropped by 739 points or 1.56% in U.S. trading hours, while tech-heavy stocks such as the S&P 500 and Nasdaq-100 fell by 103 and 431 points, respectively.

Advertisement

The crypto market rallied as Investor risk-on sentiment improved after oil prices dropped sharply across the globe. Notably, Brent crude oil fell over 7% today, easing immediate fears of inflation and providing a more favorable environment for digital assets.

Short liquidations mount

As crypto prices rallied, it caught short sellers off guard, triggering liquidations of these highly leveraged positions. Data from CoinGlass shows that nearly $246 million was liquidated from leveraged markets, with the majority coming from short positions.

The total crypto market open interest also rose 5.2% on Friday, signalling that investors were injecting fresh capital into the market.

Advertisement

ETF inflows and Coinbase premium

Inflows into spot ETF products have also supported the recent gains. According to data from SoSoValue, on Thursday, $53.87 had entered spot Bitcoin ETFs, which marks the fourth straight day of inflows for these funds. A similar trend was visible across their Ethereum counterparts, which have posted three back-to-back days of inflows.

At the same time, Coinbase Premium has also risen sharply over the past 24 hours, indicating that U.S. institutions are paying a premium over global prices to secure Bitcoin. Traders often view this as a strong bullish signal that institutional “smart money” is leading the current market charge.

Crypto market rallied following Trump’s recent comments

Crypto prices also benefited after U.S. President Donald Trump recently hinted that the ongoing war between the two countries may be coming to an end. 

This seemed to have calmed investor fears of a prolonged war, which in turn sparked a risk-on sentiment among investors who have begun moving capital from safe havens back into risk assets like crypto.

Advertisement

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Vitalik Buterin Questions AI Strategy of Group He Funded

Published

on

Vitalik Buterin Questions AI Strategy of Group He Funded

Ethereum co-founder Vitalik Buterin said Friday that he is no longer closely aligned with the Future of Life Institute, a group that received SHIB tokens from him in 2021. 

Buterin said the institute originally pitched him a broad roadmap for reducing existential risks, including those tied to artificial intelligence, biology and nuclear threats, along with wider pro-peace and pro-epistemics initiatives. He said that helped motivate the Shiba Inu (SHIB) donation.

Buterin said the institute later moved toward cultural and political advocacy around AI risks, an approach he described as materially different from the strategy outlined when he donated.

“My worry is that large-scale coordinated political action with big money pools is a thing that can easily lead to unintended outcomes, cause backlashes, and solve problems in a way that is both authoritarian and fragile, even if it was not originally intended that way,” he wrote.

Advertisement

Buterin expresses disagreements to FLI’s current approach

The FLI describes its mission as reducing extreme risks and steering transformative technologies to benefit humanity.

“We need policies to help ensure that AI development improves lives everywhere – rather than merely boosts corporate profits,” the organization states on its website. 

Source: FLI

However, Buterin said some of the group’s proposals focus on placing safeguards in biosynthesis devices and AI models so that they refuse to produce harmful outputs.

“I view this as a very fragile solution: there are many ways to jailbreak, fine-tune or otherwise get around such restrictions,” he added. 

Cointelegraph reached out to the FLI for comments, but had not received a response by publication.

Advertisement

Related: Vitalik says ‘at present’ his donations yield better gains than investments

FLI cashed out $500 million from the SHIB donation

In 2021, Buterin received large amounts of SHIB tokens and other dog-themed tokens as developers attempted to use his name as a marketing tactic. He later allocated some of those tokens to charitable causes.