Cryptocurrencies gained following successful negotiations on raising the U.S. debt ceiling that injected some optimism into markets.
Bitcoin, the world’s largest cryptocurrency, rose 1.08% to US$27,076 in 24 hours to 4 p.m. in Hong Kong, bringing its weekly gains to 2.08%, according to CoinMarketCap data.
Ether, the second biggest cryptocurrency in the world, gained 1.78% to US$1,886 in 24 hours, after rising 3.85% in the last seven days.
Litecoin was the biggest gainer among the top 10 cryptos, climbing 2.25% to US$94.48 in 24 hours, and strengthening 8.35% on the week. It rose on stronger buying support from its third halving event that is set for Aug. 2, which would reduce the supply of the token.
Litecoin’s on-chain activities increased in May, according to blockchain data tracker IntoTheBlock on Tuesday, which noted almost 8.5 million Litecoin addresses with a balance by the end of May, compared to 7.09 million addresses by the end of March.
The global crypto market capitalization strengthened 1.21% to US$1.14 trillion, while the total crypto market volume lost 5.75% to US$29.94 billion in the last 24 hours.
The recent gains in cryptocurrencies come after a period of volatility in the market. Bitcoin and Ether both saw their prices fall sharply in May, but have since recovered some of those losses.
The successful negotiations on raising the U.S. debt ceiling have helped to boost investor sentiment, which has also benefited cryptocurrencies.
The third halving event for Litecoin is also likely to be a positive catalyst for the price of the cryptocurrency. The halving event will reduce the supply of Litecoin by half, which could lead to increased demand and higher prices.
