Sat 12 October 2024 ▪
3
min reading ▪ acc
Since September 2024, the cryptocurrency market has grown by an impressive 8%, outperforming many traditional assets. This significant increase was largely attributed to favorable macroeconomic conditions, which we will see later in this article.
The crypto market grew by 8% in September!
Despite an overall sluggish third quarter, the crypto market outperformed traditional assets such as gold by 8%, demonstrating its resilience and potential for long-term growth. Bitcoin price fluctuated in September, but investors showed renewed confidence in the digital asset.
The decentralized finance (DeFi) sector in particular benefited from this momentum, with a 9.6% increase in total value locked (TVL) in DeFi protocols. This growth reflects renewed interest in decentralized applications and innovative financial services offered by cryptocurrencies.
Key factors in this dominance
Global economic decisions have played a vital role in this recovery. The US Federal Reserve’s interest rate cuts boosted investor confidence, while stimulus measures in China boosted demand for cryptocurrencies. These factors have contributed to an increase in the total capitalization of the crypto market, which has reached an unprecedented level.
In addition, institutional investors continued to show increasing interest in digital assets. Almost 50% of traditional hedge funds now have exposure to cryptocurrencies, taking advantage of increasing regulatory clarity. This trend highlights the growing acceptance of cryptocurrencies as a legitimate and promising asset class.
Finally, the 8% growth of the crypto market in September 2024 demonstrates the robustness and resilience of the sector in the face of economic challenges. Stimulus measures and monetary policy adjustments, such as the Fed’s rate cuts, have played a key role in this recovery and provided an optimistic outlook for the future of cryptocurrencies.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.