Bitcoin Surpasses $113K as Investor Optimism Drives $2.8T Crypto Rally

The global cryptocurrency market saw a significant rally on August 10, with Bitcoin (BTC) breaking above the $113,000 level for the first time since mid-2021, signaling a strong resurgence in investor confidence. According to blockchain analytics firm CoinGlass, the total crypto market capitalization surpassed $2.8 trillion, with Bitcoin’s market dominance hitting a seven-month high of 53.2%. The broad-based market upswing was supported by renewed optimism around Ethereum’s upcoming upgrades and a decline in major central banks’ hawkish rhetoric.

Altcoins also participated in the upward trend, with ether (ETH) rising nearly 11% to $3,650 during the session, while Solana (SOL) and Cardano (ADA) each gained more than 15% in 24 hours. The surge in demand for speculative assets was reflected in the growing volume on decentralized exchanges, with Uniswap and SushiSwap reporting a combined 25% increase in trading activity compared to the previous week. Analysts attributed part of the momentum to the continued inflow into crypto exchange-traded funds (ETFs), particularly in China Hong Kong and Singapore, where regulatory environments have become more favorable.

The bullish sentiment was further reinforced by on-chain data, which showed a sharp decline in Bitcoin’s short interest ratio to 0.7x, the lowest level since March 2022. Long traders held a dominant position in perpetual futures contracts, and funding rates turned positive across major exchanges, indicating a shift in market sentiment toward long bias. This was also reflected in the increasing number of new addresses on the Bitcoin network, with over 1.2 million wallets registering transactions on August 10 alone.

In terms of macroeconomic context, a recent decision by the U.S. Federal Reserve to hold interest rates steady at its latest policy meeting contributed to the risk-on environment. While the central bank hinted at potential tightening later in the year, the immediate pause was interpreted as a positive catalyst for growth-sensitive assets like cryptocurrencies. Additionally, China’s recent easing of regulatory restrictions on crypto mining and trading in certain provinces has led to a modest increase in mining hash rates, with Bitcoin’s network difficulty rising 4.2% in the past week.

Market observers noted that despite the gains, key resistance levels for Bitcoin remain in focus. Technical indicators suggest that $115,000 could act as the next major psychological hurdle, with a successful breakout potentially opening the door for a test of all-time highs. However, analysts caution that volatility remains high, particularly with the upcoming U.S. inflation data due for release later in the week. A sharper-than-expected rise in inflation could prompt renewed selling pressure across risk assets, including crypto.

Overall, the market’s performance on August 10 reflects a convergence of favorable technical conditions, macroeconomic pauses, and improving regulatory clarity in key markets. As institutional adoption continues to grow, and with several major blockchain upgrades on the horizon, the crypto market appears poised for a period of sustained growth—albeit with the caveat of continued macroeconomic uncertainty.