Apart from Bitcoin’s current price levels which are highly bullish, other developments in the crypto sector during the week marked significant moments for the entire industry.
The week witnessed a very important upward curve in the crypto market after a phase of slowing down. After the spot Bitcoin ETFs, the market saw a stagnant phase with several tokens facing selling activities. As Bitcoin’s current price trajectory had the $50,000 price breakout this week, sentiments have vastly improved. As a result, the overall crypto outlook has turned optimistic.
The recent crypto price rally also impacted crypto regulation positively, especially in the US. A Senate bill in Virginia has proposed creating a group to study crypto and blockchain. Since several crypto bills have emerged in the US in 2024, the spot Bitcoin ETFs could play a major role in influencing lawmakers.
On the other hand, calls for a spot Ethereum ETF have also grown higher with the success of the current ETFs. Several asset management firms have already applied for a spot Ethereum ETF, while they await approvals from regulators. Private corporations like Citi have jumped into the crypto bandwagon as well, with blockchain trials on private equity funds.
In Europe, encouraging news appeared in the Isle of Man and in Torrevieja in Spain. While the former published likely crypto regulatory rules, the latter aimed to become a crypto-friendly city. Thus, the week has cheered the crypto community on multiple fronts, from regulation to the market’s performance.
Moreover, the crypto price rally has shown signs of advancing ahead in the upcoming week as well. It could be possible If Bitcoin’s current price support holds at $52,000 for some time. On the other hand, the bullish crypto outlook wasn’t affected by even the surging inflation data in the US.
Member of the Federal Reserve, Christopher Waller, also spoke positively about certain crypto use cases this week. His speech, mentioning stablecoins, said, “About 99 percent of stablecoin market capitalization is linked to the U.S. dollar, meaning that crypto-assets are de facto traded in U.S. dollars. So it is likely that any expansion of trading in the DeFi world will simply strengthen the dominant role of the dollar.”
An interesting trend this week included MicroStrategy becoming the 535th biggest public company in the US. If the firm enters the S&P 500 index, millions of investors could get indirectly exposed to BTC. It would happen since the firm is one of the biggest investors in BTC itself.
Hence, the rising popularity and dominance of BTC have become unparalleled in the last few months. The optimistic change in the crypto outlook could continue in 2024.
This week, the following tokens surged the highest:
Meanwhile, these tokens lost the most value, although the negative returns were much less compared to earlier weeks:
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