Key points:
The crypto market is up 3.9% on June 10, with its capitalization rising to $3.41 trillion.
Continued capital inflow into crypto investment products is boosting investor confidence.
The TOTAL chart validates a bull flag pattern targeting $4.36 trillion.
The cryptocurrency market is up today, with the total market capitalization rising by approximately 3.9% in the last 24 hours to reach $3.41 trillion on June 10.
The total 24-hour trading volume across all crypto assets has also increased by 40% to $131.3 billion, suggesting increasing buyer interest in crypto assets.
Let’s look at the factors driving crypto prices up today.
Continued demand for crypto investment funds
The ongoing crypto market recovery aligns with continued capital inflows into crypto investment products.
Digital asset investment products see inflows for the seventh week in a row, with deposits totaling $224 million during the week ending June 6, as per CoinShares report. This brings the last seven weeks of inflow to $11 billion, indicating institutional investors’ increasing exposure to digital assets.
Ether (ETH) led with $296.4 million in inflows, marking its 7th week of inflows totaling $1.5 billion.
CoinShares head of research James Butterfill attributed this to reducing macroeconomic uncertainties as investors await clarity from the US Federal Reserve.
Butterfill said:
“There has been a noticeable deceleration amid uncertainty over monetary policy, with investors adopting a wait-and-see stance ahead of further signals from the US Federal Reserve on inflation.”
In the meantime, SoSoValue reported positive inflows into US-based spot ETFs, with approximately $788.9 million flowing into spot Ethereum ETFs between May 22 and June 9.
Approximately $386.2 million flowed into spot Bitcoin ETFs on June 10.
The long-term trend for crypto investment products suggests a consistent demand, which positively impacts crypto prices.
Massive short liquidations fuel price surge
Another driver of today’s rally is a wave of short liquidations that have triggered a significant short squeeze.
Related: Bitcoin, US crypto stocks rise as more firms plan BTC buys
In the past 24 hours, over $451 million in crypto positions have been liquidated across the crypto market, with approximately $391 million representing short position liquidations.
Short Bitcoin (BTC) leveraged positions totaling $195.8 million have also been liquidated on the day.
The largest single liquidation occurred on HTX, where an ETH/USDT position worth $4.06 million was liquidated.
The magnitude of this liquidation mirrors the May 21 and May 23 liquidation events, where more than $451 million in short-leveraged positions were liquidated, accompanying a 7% increase ($230 billion) in the total crypto market capitalization over the same period.
The short squeeze has played a crucial role in amplifying the current rally, particularly for Bitcoin, which has led the market with its charge toward $110,000.
Total market cap validates bull flag
TOTAL, or the combined market capitalization of all cryptocurrencies, confirmed a bull flag pattern on June 8, when it breached the upper boundary of the flag on the daily chart at $3.25 trillion.
TOTAL is currently testing the resistance level at the $3.5 trillion psychological level, as shown in the chart below.
A high volume move above this level could accelerate the current bullish momentum toward the technical target of the prevailing chart pattern at $4.36 trillion, a 30% gain from the current level.
The relative strength index (RSI) is at 59 and has risen from 44 over the last five days, indicating increasing bullish momentum.
In addition, the appearance of a “golden cross,” when the 50-day simple moving average (SMA) crossed above the 200-day SMA on June 6, signals a sustained upward trend in the crypto market.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
