Bitcoin Surges 25% in One Month, U.S. Traders Embrace ETF News
The world’s largest cryptocurrency, bitcoin (BTC), has experienced a significant 25% increase in value over the past month, with the majority of these gains occurring during U.S. trading hours, according to crypto services provider Matrixport. This surge comes as news of a U.S.-listed spot bitcoin exchange-traded fund (ETF) appears imminent.
Markus Thielen, head of research at Matrixport, stated, “This is a significant development and shows that U.S. institutions and U.S. investors are embracing the news that a U.S.-listed spot bitcoin ETF appears imminent.” ETFs are traded on exchanges and track the performance of an underlying asset. They offer investors cost-effective access to cryptocurrencies without having to purchase the digital assets themselves. Analysts and trading firms anticipate that the approval of a spot bitcoin ETF will result in a surge of mainstream investment in the crypto sector.
Matrixport’s research highlights that there are currently approximately 420 million to 440 million cryptocurrency owners globally. Of these, 260 million are in Asia, 54 million in North America, 38 million in Africa, 31 million in South America, and 1.5 million in Oceania. While Asia constitutes the largest group, the report emphasizes that the buying power of U.S. traders and institutions is significantly greater.
The note from Matrixport also mentions that the total crypto market capitalization has surpassed $1.25 trillion once again. Furthermore, trading volume has increased by an impressive 99%, with $92 billion being traded across the market. Despite the existence of various alternative cryptocurrencies, Bitcoin maintains its position as the top digital asset with 53% dominance and outperforms even the most high-beta altcoins, as stated by Matrixport.
However, the report warns that technical indicators indicate a potential slowdown in this bullish market. This suggests that a pause in Bitcoin’s upward trajectory may occur in the near future. Nevertheless, market experts remain optimistic about the overall direction of the cryptocurrency market and anticipate further growth in the coming months.
As the crypto market evolves, the embrace of bitcoin ETFs by U.S. traders and institutions is expected to have a significant impact on the sector’s continued expansion. With the growing acceptance and adoption of cryptocurrencies, the potential for increased mainstream investment and widespread market participation becomes increasingly likely.