The cryptocurrency market has witnessed a significant upswing, with Bitcoin and Ethereum leading the charge. Bitcoin surged nearly 36% over the past month, surpassing $36,500, while Ethereum ascended over 32%, reaching above $2,050. This bullish momentum is largely attributed to the anticipated launch of Bitcoin and Ethereum exchange-traded funds (ETFs) by investment giant BlackRock (NYSE:BLK).
The global crypto market cap now stands at $1.4 trillion, marking a robust increase in total volume by around 31% to $62.44 billion from the previous day. Bitcoin maintains its dominance with over 51% of the market share and a market cap exceeding $713.67 billion.
Over the past week, Bitcoin appreciated nearly 5%, and Ethereum outperformed with a close to 9% rise, surpassing Bitcoin in weekly gains though trailing in monthly increments. Ethereum's market cap is noted at approximately $247.3 billion.
Analysts at WazirX linked the recent surge in crypto markets to several key factors:
- BlackRock's application for Bitcoin and Ethereum ETFs has significantly boosted investor sentiment.
- The unexpected early seeding announcement from BlackRock further fueled the positive outlook.
- The settlement of Grayscale's lawsuit with the Securities and Exchange Commission (SEC) has also played a role in bolstering confidence.
- Encouraging technical indicators suggest a potential renewed uptrend in the market.
They emphasized that for this bull run to be sustained, regulatory clarity is needed following the Grayscale vs SEC lawsuit. Additionally, heightened institutional participation is anticipated if BlackRock's ETFs receive approval. A consistent flow of positive news and an upbeat market sentiment are crucial to attract more retail investors.
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