2024-02-08 09:48:39
© Reuters.
Investing.com – After a down month of January, the cryptocurrency market started February with a recovery, driven by demand for bitcoin exchange-traded funds (ETFs) and optimism about the upcoming halving event.
In the last 24 hours, it has appreciated more than 3%, surpassing the resistance of US$43,300, which had been limiting its gains. , which had already stood out the previous day, expanded its advantage over bitcoin, trading above US$2,400. Among the top 100 cryptocurrencies, several registered double-digit increases in percentage terms.
Among the positive factors of the week, the continuation of bitcoin purchases by , the largest institutional investor in cryptocurrencies, stands out. After releasing its quarterly results, the company reaffirmed its confidence in bitcoin and announced its projects related to the digital currency network. MicroStrategy, which began acquiring bitcoin in 2020, has been striving to give the cryptocurrency a corporate identity and turn it into an important store of value asset.
Despite the postponement of the SEC’s decision on proposed ethereum spot ETFs, there are expectations that one of these products will be approved in May. Firms such as Ark Invest and 21 Shares have made changes to their applications to allow cash investments in spot ETFs, a move similar to what occurred prior to the approval of the bitcoin spot ETF. These moves are seen as signs of institutions’ growing appetite for ethereum, which follows bitcoin as the second-largest cryptocurrency by market value.
Furthermore, , considered an important alternative to the ethereum network, faced a serious problem in its network this week, but it seems that investors’ confidence in the ecosystem has not been shaken. Institutional interest in the SOL token has been increasing in recent months, and after a slight pullback to $92 at the start of the week, purchases in the last 24 hours have taken the price back above the psychological $100 level.
Another factor that drove the market’s recovery this week was the advance in the spot bitcoin ETF market. The ETF product, for example, quickly became one of the top 5 inflow ETFs in 2024. The Bitcoin ETF also continues to see significant inflows. The growing demand for bitcoin ETF products, with outflows dwindling every day, is a supportive factor for the cryptocurrency market.
The medium-term outlook for the cryptocurrency market is positive. The next big catalyst is the bitcoin halving event, which occurs approximately every four years, expected to take place in about two months. The halving of the reward on the bitcoin network is seen as a factor that will reduce the supply of the currency, positively impacting the rest of the market.
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