With a rising market, more spot ETFs on the way, and regulatory improvements, the overall crypto prospects across the industry marked big strides during this week.
Bitcoin’s price graph has been one of the best aspects of the crypto market this week. It even helped significantly improve wider crypto prospects. In hindsight, Bitcoin’s price graph started the week with a sudden price hike. For months, BTC had been stuck in a static price range. Hence, the move came as a relief for traders.
Once BTC crossed $70,000 and attempted consolidation, the market soared with higher token prices. Most altcoins have registered positive gains over the week. Even Ethereum was trading slightly higher than last week’s close. A major driver of this rally has been the spot Bitcoin ETFs, which have posted regular inflows throughout the week. Stakeholders will be expecting this trend to continue in the upcoming week.
Amongst the ETFs, a new development has emerged in Australia. Authorities in the country have approved a spot Bitcoin ETF, the first in the region. Australia became the third country after the US and Hong Kong to approve a spot crypto ETF. If one observes these trends, it won’t come as a surprise if more countries join this bandwagon in 2024.
One of the first interest rate cuts in the world has been done by the European Central Bank. The regulatory authority cut interest rates for the first time since 2019, marking a landmark moment. If central banks across the globe follow its cue, the crypto market could be injected with higher liquidity. Moreover, monetary policy has become a very important macroeconomic indicator for the crypto market. Especially in the case of the US Federal Reserve, its actions have been very impactful on the crypto market.
In the weeks ahead, BTC’s $72,000 price zone could become the prime factor for the overall crypto scenario. If bulls are able to stage a quick pull-up to $75,000, Bitcoin could enter a relatively stable range. The trading range between $69,000 and $72,000 has been very fickle for the token in recent months.
Other positive events that influenced the crypto scenario emerged in the Middle East. Qatar has started the official exploration project for its central bank digital currency. On the other hand, the UAE has approved a stablecoin licensing system, moving toward a regulatory regime. It is one of the many steps that have legitimized the crypto industry’s importance and potential.
The asset management industry also came out in full support for crypto this week. Fidelity has endorsed higher Bitcoin investments, while Franklin Templeton is deliberating on an altcoin crypto fund.
This week, the following tokens surged the highest:
But these tokens saw the biggest losses:
The two graphs above indicate that multiple tokens are back with double digit weekly returns. But only a few tokens posted such high losses.
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