The cryptocurrency market has experienced a notable upswing, with Bitcoin and Ethereum spearheading the bullish trend. Bitcoin has surged by almost 36% in the past month, surpassing the $36,500 mark, while Ethereum has seen an impressive climb of over 32%, reaching levels above $2,050. This surge is largely attributed to the eagerly anticipated launch of Bitcoin and Ethereum exchange-traded funds (ETFs) by investment behemoth BlackRock (NYSE:BLK).
The global cryptocurrency market cap has now reached $1.4 trillion, indicating a robust increase in total volume by approximately 31%, soaring 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.
In the past week, Bitcoin has appreciated nearly 5%, and Ethereum has outperformed with an almost 9% rise, surpassing Bitcoin in weekly gains, although trailing in monthly increments. Ethereum’s market cap is currently estimated at around $247.3 billion.
Analysts at WazirX attribute the recent market surge to several key factors:
1. BlackRock’s application for Bitcoin and Ethereum ETFs has significantly bolstered investor sentiment.
2. The unexpected early seeding announcement from BlackRock has further fueled the positive outlook.
3. The resolution of Grayscale’s lawsuit with the Securities and Exchange Commission (SEC) has played a role in boosting confidence.
4. Encouraging technical indicators suggest a potential renewed uptrend in the market.
They emphasize that sustaining this bull run requires regulatory clarity 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. Investors are advised to monitor these developments closely as they continue to shape the trajectory of the cryptocurrency market.