Bitcoin hit a six-month high on Thursday morning, trading below $25,000.
According to Messari, the cryptocurrency market rose by $85 billion the previous day.
Cryptocurrency regulation in the US does not seem to be affecting investor sentiment.
Bitcoin prices hit a six-month high on Thursday as the cryptocurrency's total market capitalization rose by $85 billion to $1.1 trillion.
The world's largest cryptocurrency is trading at around $24,376, up 7.3% in the past 24 hours, Messari said.
Ethereum, the second largest by market value, is trading up 6.7% at $1,673. The cryptocurrency market is down year-to-date, with Bitcoin and Ether up 49% and 39%.
It comes amid a broader rally of riskier assets, with the Nasdaq Composite posting double-digit gains so far this year.
"The market has shown more positive sentiment in recent weeks as seen with call ratios at their lowest levels in contango futures, but traditional markets have been in more positive territory since the beginning of the year." Luke has announced Strayers as commercial director at cryptocurrency exchange Deribit.
Investor appetite appears to be growing amid expectations of further easing from the Federal Reserve next month. Earlier this month, the central bank introduced its lowest interest rates in a year, allowing traders to invest in more speculative assets such as high-growth stocks and cryptocurrencies.
Tay Elriula, founder and CEO of blockchain startup FLUUS.com, said the new protocol called Ordinals has brought more users to the Bitcoin network. Flips allow the creation of non-perishable tokens on the blockchain.
"The price increase could be due to many factors, especially the adoption of the Ordinals protocol," Elriula told Insider. "This has led to a resurgence of interest in Bitcoin (BTC) mining and an increase in the average block size as more users join the network."
US regulatory oversight of the cryptocurrency industry has also not affected investor sentiment.
A top security watchdog is monitoring Binance's trademarked BUSD stablecoin, the Wall Street Journal reported Sunday. Stablecoins are cryptocurrencies linked to a benchmark and often backed by assets such as fiat money or commodities.
While the move led to $1.4 billion worth of token buybacks in a matter of days, the report didn't have much of an impact on broader cryptocurrency prices.
However, cryptocurrency markets are still unclear. Macro conditions remain volatile as inflation rises and traders are grappling with the Fed's every word for a signal about the direction of monetary policy.
"While it's nice to see Bitcoin hit a six-month high, there may be some volatility in the market until the inflation issue is fully resolved," Elreula added. “However, the overall outlook for the year is optimistic and more widespread adoption of Bitcoin and other cryptocurrencies is expected.
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