Crypto Prices Are Rallying Again Amid ETF Anticipation
After the resounding collapse of 2022 that led to losses of over $2 trillion, numerous scandals, and months of wishy-washy upswings and sideway movements in 2023, the cryptocurrency market was in dire need of some good news to bring back a bit of optimism and instill a sense of confidence and enthusiasm in the crypto community. And the good news is finally here: crypto prices are once again rallying and this time it seems like the appreciation trend is not going to be as fleeting as the previous ones which could lead to substantial gains.
For those who wanted or were wondering how to purchase ETH, Bitcoin or any other well-known coin but refrained from doing so due to the uncertainty and low morale that has dominated the market in recent months, this bull run could be the spark they needed to resume their investment plans and boost their crypto portfolios.
If you’ve been keeping close tabs on the cryptocurrency industry these past few years, you know it’s quite difficult to maintain an objective and impartial mindset and not let the endless string of negative events influence your perception. Reports of frauds, hacks, collapses and regulatory scrutiny have spread nothing but desolation and caused many crypto supporters to lose hope in the market’s chances of recovery. But this week has proven how fast things can change direction and how volatile human emotions can be as the market is once again flooded with hope and anticipation.
Crypto Prices Hit New Yearly Highs
In order to offer an accurate account of what’s going on in the crypto market at the moment and help you appreciate the breadth and importance of the current price surge, we’re going to turn our attention to the two biggest coins in the market, Bitcoin and Ethereum. Their recent price evolution reflects the present state of the industry the best.
As the leader of the cryptocurrency space, Bitcoin attracts the largest interest from traders and investors. The flagship crypto started the year on a rather positive note, recovering a considerable share of its lost value, only to enter a period of stagnation in recent months after hitting a resistance point at $30K. There have been several instances of Bitcoin topping $30,000 in 2023 but unfortunately, the asset was unable to maintain momentum and hold above the critical threshold.
This week, however, things took a turn for the better as the coin not only pushed beyond $30K once again but continued the appreciation trend until it hit a new yearly high of $35,000. Even if the rally to $35K was followed by a pullback, Bitcoin’s value remains higher than the monthly average, currently sitting at $ 33,794.
Looking at the bigger picture, Bitcoin registered a 30% increase in the last 60 days and a 27% increase over the past month. Obviously, these values are not comparable to its all-time high of $ 68,789, but seeing Bitcoin in the green and building momentum above $30K after so many failed attempts is certainly a reason for optimism.
As for Ethereum, the oldest and biggest altcoin on the market, and the frontrunner of innovation in the crypto space, a new bull run seems to be emerging on the horizon. Similar to its competitor Bitcoin, Ethereum has taken huge leaps towards recovery in 2023 but despite its notable price appreciation in the first half of the year, the coin faced strong resistance at 1,600-1,800.Every foray beyond these values was cut short by subsequent price corrections, keeping Ethereum price in the same range for several consecutive weeks.
But shortly after Bitcoin surged by 15%, Ethereum defied all expectations by breaking above the $1,800 mark and racing towards $2,000, recording a price increase of 10%. The coin hit a high of $1,852 and is currently trading at $1,787 after a slight dip.
Ethereum’s long-term performance clearly indicates that the asset is on the path to recovery, with an 8% gain over the past 60 days and a 12% increase registered in the last 30 days. One can argue that Ethereum is moving much slower than its main challenger, but the altcoin leader is certainly heading in the right direction. One should not forget that just a couple of weeks ago, Ethereum was standing at $1,500 with no prospects of appreciation in sight.
The Factors Driving The Price Appreciation
The crypto market is under the influence of a multitude of external and internal factors, so it can be difficult to pinpoint the events and elements that are prompting certain developments. But given that the crypto market has been rather quiet lately, the only notable aspect that could be linked to the recent price increase is the imminent decision regarding Bitcoin exchange-traded fund (ETF) applications by financial giants BlackRock, Fidelity, and VanEck with the Securities and Exchange Commission (SEC).
Although the SEC has rejected all previous ETF applications, traders and investors are growing increasingly confident that this time things are going to be different and the regulator will finally give the green light for launching Bitcoin ETFs. The SEC has delayed the ruling several times so far, but the anticipation of a potential approval has served as a catalyst for the current price rally. A positive answer could benefit mainstream investors greatly by allowing them to gain direct exposure to Bitcoin without actually owning the asset.
This optimistic outlook caused not only the value of Bitcoin and Ethereum to go up but also increased the stock price of several companies like Coinbase and Riot Platforms.
Bottom line
The cryptocurrency market is looking much better today than it did just a couple of weeks back, with major assets like Bitcoin and Ethereum showing great potential for appreciation due to the hype created around the Bitcoin ETF applications. The positive sentiment in the market could further the upward trend and give rise to other bullish signals in the near future.
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