Crypto Market Rises as Bitcoin and Ether Hit New Heights, Indicating Possible End to Bear Phase
Summary:
The cryptocurrency market is witnessing a surge, led by Bitcoin and Ether reaching unprecedented 2023 highs, while Altcoins like Cardano also report notable gains. Reasons credited include Bitcoin's decreasing presence on central exchanges, increased institutional interest, and record inflows into Ether. Additionally, total locked value in DeFi platforms and trading volumes are trending upwards. Despite potential risks, increased institutional investment and higher trading volumes suggest the bear phase might be over.
The cryptocurrency market is experiencing an upswing today, with Bitcoin (BTC) and Ether (ETH) reaching unprecedented 2023 highs, while Cardano (ADA) and various other altcoins making significant gains. This positive upturn has been spearheaded by Bitcoin, which has crossed the $40,000 mark for the first time in 19 months on Dec. 3. On Dec. 4, Bitcoin's price spiked over $42,000, a record not seen in the last 20 months. Let's dissect three crucial elements that are fueling this crypto market surge today.
Bitcoin keeps evacuating from central exchanges.
Over the last 24 hours, the growth seen in the cryptocurrency market's price is attributed to the increased withdrawal from centralized crypto exchanges. As per the data from Coinglass, more than 20,000 Bitcoin have been withdrawn from crypto exchanges since Nov. 15. This drop in Bitcoin storage across crypto exchanges is in line with the price surge, indicating that traders are retaining their Bitcoin assets, lowering the selling pressure in the market.
This rise in optimism is mirrored in the Bitcoin Fear and Greed Index, which indicates a monthly high 'greed' level, an 8-point surge during the week.
Institutional investments in crypto reach an all-time high
Cryptocurrency started attracting institutional attention outside Bitcoin on Nov. 9 when BlackRock confirmed its plans for an Ether-based spot exchange-traded fund (ETF) through a 19b-4 form filed with the US Securities and Exchange Commission (SEC). Post-confirmation, Ether price experienced a 12.2% spike, surpassing Bitcoin for the first time in several months.
BlackRock's potential Ether venture suggests a growing interest amongst institutional investors in the cryptocurrency market. This could lead to a substantial capital influx into Ether, further increasing its price.
This growing interest from institutional investors is fostering a positive sentiment across the market. Inflows from these investors suggest Ether's outperformance is not a solitary incident and could last. Over the past 10 weeks, inflows have been recorded at $1.76 billion, the largest since October 2021, with Ether's net flows reaching a yearly high of $10 million.
Total locked value and trading volumes rocket
The crypto market's positive sentiment gets reflected across the ecosystem. Trading volumes for Bitcoin and altcoins hit $44.1 billion on Nov. 9. The highest daily trading volume in December remains at $20 billion, still higher than September levels.
Trading volume is not the sole elevated metric. On Dec. 4, the total locked value (TVL) in DeFi platforms peaked to a multi-month high, reaching its top level since June 3. The TVL surged to $49.7 billion, a 1.5% climb over a 24-hour span.
This rise in volume and TVL, breaking November's 2-year slump, has invited optimism. Despite potential risk events affecting Bitcoin and altcoins' price, the increased institutional interest and better trading volumes suggest that the bear market could be over.
Do note, this article doesn't provide investment advice or recommendations. All investments or trading actions bear a level of risk and readers are urged to perform their own research before making decisions.
Published At
12/4/2023 8:57:33 PM
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