Bitcoin’s price has surged to over $35,000 in the last 24 hours, marking a remarkable 13% rally, driven by high expectations of Bitcoin ETF approvals in the United States.

At the time of writing, Bitcoin is trading at approximately $33,000. However, Bitcoin is not the only cryptocurrency experiencing a boost in value; the broader cryptocurrency market is also benefiting from this positive price action.

Between October 16 and October 24, Bitcoin’s market capitalization surged from $500 billion to $650 billion, as noted by Luke Nolan, a research associate at CoinShares. During this same period, the overall market capitalization of the crypto industry increased by $180 billion, rising from $1.039 trillion to $1.219 trillion.

This data suggests that around $540 billion in market capitalization has flowed into the broader crypto market. As the saying goes, “a rising tide lifts all boats,” and it’s exceptionally rare to witness Bitcoin moving in isolation, according to Nolan.

Nolan points out that Bitcoin’s dominance in the crypto market has notably increased from 50.5% to 53.9% between October 15 and October 24, and the appreciation in Bitcoin’s price has had a positive impact on other cryptocurrencies.

Comparing the situation to the S&P 500 in traditional markets, Nolan illustrates that Bitcoin often represents the “health” of the wider crypto market. Just as stocks often perform well when the S&P 500 is on an upward trend, other cryptocurrencies tend to benefit when Bitcoin’s price rises, even if they are not directly associated with Bitcoin.

Nolan also highlights a more technical aspect, stating that it is common for altcoins to be paired with Bitcoin on exchanges. Consequently, when Bitcoin’s prices surge, trading volumes increase across the board as traders flock to altcoins using these trading pairs. This phenomenon is due to the denomination of coins in Bitcoin, leading to a general positive correlation among cryptocurrencies.

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