Crypto Market Value Climbs to $1.7 Trillion Amid Anticipation of Bitcoin ETF Approval
Summary:
The total value of all cryptocurrencies increased by 6.50%, reaching $1.7 trillion. This jump is attributed to predictions of the U.S. Securities and Exchange Commission's approval of spot-based Bitcoin ETFs, a surge in tech stocks, a weakened U.S. dollar, and the upcoming Bitcoin halving. The decision on Bitcoin ETFs carries potential long-term impacts on market dynamics and investor community.
The combined value of all digital currencies jumped 6.50% during the past day, reaching a total of $1.7 trillion. This increase was bolstered by Bitcoin (BTC) and Ether (ETH), which saw increases of 6% and 3.5%, respectively. This surge is chiefly linked to expectations regarding the U.S. Securities and Exchange Commission's (SEC) pending approval of spot-based Bitcoin ETFs. Standard Chartered has projected such approval could ignite a Bitcoin value hike to $200,000 by late 2025.
The fervor surrounding this ETF bidding war reflects a belief that any loss in fees will be offset by a substantial influx of money. In confirmation of this trend, 2024 has seen a rise in digital asset investment funds, peaking at $151 million inflows.
Besides awaited ETF approval, a surge in tech stocks and a weakened U.S. dollar have bolstered the cryptocurrency market. There has been a co-relational uptick in the behavior of the cryptocurrency market and the tech-laden Nasdaq Composite Index (IXIC) since November 2023, witnessing respective increases of 40% and 18.5%, while the U.S. Dollar Index (DXY) has fallen by 4.45%.
The imminent Bitcoin halving, now less than 100 days away, has added to the positive mood. The halving will slice the rate of fresh Bitcoin supply in half, a move that has historically led to increased rates.
Several contributing factors, including the impending SEC decision concerning Bitcoin ETFs, have been stated, which together influence the ongoing swell in the cryptocurrency market. This decision is of particular significance, bearing potential long-term impacts on market dynamics and the investor community.
Please note that this article does not offer investment advice or recommendations. All investment and trading actions carry inherent risks, necessitating individual research before any decision-making.
Published At
1/9/2024 2:33:39 PM
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