After months of anticipation in the crypto market, the US crypto ETF approvals finally triggered a hike in bullish sentiments, creating a sense of optimism across the industry.
The US crypto ETF approvals became the crypto space’s central event in the past week. Analysts and experts had long predicted an early approval, but a few obstacles had also ensued. Grayscale’s legal victory in the matter could have also accelerated the approvals. Moreover, crypto industry stakeholders welcomed the approvals with great optimism.
The spot Bitcoin ETFs made BTC reach almost $48,000 on January 11, after which the rally lost steam. Bitcoin is still trading with firm fundamentals and may see a price jump soon. At the same time, experts are heralding a likely inclusion of more investors in the crypto market with the spot Bitcoin ETFs.
The ETF launch could spur the development of new infrastructure and products tailored to Bitcoin. The move could further strengthen the overall ecosystem, helping other tokens. More retail investors can also gain exposure to the crypto market via the ETFs. It could lead to increasing demand and prices in the market.
The approvals legitimized Bitcoin’s popularity as an asset class, which could attract more public players. Eventually, it may lead to more trust in the crypto community. Meanwhile, institutional investors could immensely gain from the spot Bitcoin ETFs and invest more securely in the crypto market. As a result, billions of dollars in fresh capital could help the market stabilize and appreciate further.
Meanwhile, crypto regulations also occupied a crucial share in developments worldwide this week. The US again emerged as a surprise, with a critical crypto bill tabled in Nebraska. The bill, which aims to liberalize rules for crypto mining, has attracted policymakers’ gaze recently.
Turkey was another country that saw significant progress in adopting its crypto regulations. The regulations could specify a transparent regulatory regime for crypto firms in the country in multiple aspects. Turkey is also developing a central bank digital currency, the trials of which are being headed by its central bank.
In the private sector, Japan’s e-commerce firm Mercara introduced a crypto payment feature that could be revolutionary in the country. Since Mercara is one of the biggest e-commerce firms in Japan, millions of new users may start investing in crypto for a smoother payment experience.
During the week, the following tokens posted the highest returns in the crypto market:
These tokens fared the worst during the week, though:
With the BTC halving event set to occur this year and easing inflationary pressures worldwide, the crypto market looks set for a big rally. It remains to be seen if BTC crosses its all-time highs in 2024.
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