Investor confidence, bolstered by key macroeconomic shifts and the anticipation of significant upcoming events like the Bitcoin halving and the introduction of ETFs, is fueling today’s surge in the cryptocurrency market
The total market capitalization of all cryptocurrencies has experienced a notable increase of 6.50%, reaching $1.7 trillion over the past 24 hours. Leading this surge, the top coins Bitcoin and Ether have shown significant gains, with Bitcoin rising by 6% and Ether by 3.5%.
Bitcoin ETF approval expectations
Today’s upward momentum in the cryptocurrency market is largely attributed to the anticipation surrounding the U.S. Securities and Exchange Commission’s (SEC) potential approval of the first spot-based Bitcoin ETFs. This expected approval is viewed by the market as an indicator of a broadening investor base. Standard Chartered has even projected that this development could catalyze a significant Bitcoin price rally, potentially reaching $200,000 by the end of 2025.
In 2024, the trend for digital assets investment funds has been distinctly positive, marked by an upward momentum. This is evidenced by a significant inflow of $151 million, reflecting increased investor interest and confidence in the digital assets space.
Tech stock rally, dollar’s decline
The daily correlation between the crypto market and the tech-centric Nasdaq Composite Index (IXIC) has remained positive since November 2023. During this period, the crypto market and the Nasdaq Composite have recorded impressive gains of 40% and 18.5%, respectively. Concurrently, the U.S. Dollar Index (DXY), which measures the strength of the dollar against a basket of major currencies, has experienced a decline of 4.45%.
Bitcoin halving less than 100 days away
This article is for informational purposes only and does not constitute investment advice or recommendations. Each investment and trading decision involves risk, and readers are advised to perform their own research and due diligence before making any financial decisions.
