Bitcoin and cryptocurrencies achieve a 6% gain thanks to ETFs
There are two main factors contributing to this positive stability in Bitcoin's price: anticipation of SEC approval for the immediate Bitcoin ETF and expectations of increased institutional demand for Bitcoin.
Today’s Cryptocurrency analysis on behalf of Rania Gule Market Analyst at XS.com
The price of Bitcoin rose to $38,016, surpassing the $38,000 level for the first time in approximately a year and a half over the past 24 hours, and was trading at $37,843 Thursday morning. Other virtual currencies, such as Ethereum, Shiba, and others, also experienced increases. This continuous rise in Bitcoin prices is supported by market investors’ expectations of immediate approval for the exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). The delay in approvals for immediate-traded investment fund applications by Hashdex and Grayscale did not hinder the current uptrend in the cryptocurrency market.
There are two main factors contributing to this positive stability in Bitcoin’s price: anticipation of SEC approval for the immediate Bitcoin ETF and expectations of increased institutional demand for Bitcoin. The SEC’s decision to postpone the final approval date for Hashdex and Grayscale’s applications regarding the conversion of futures-based Bitcoin investment funds into immediate funds had no significant impact on Bitcoin’s price, which continued its strong upward trend.
It is worth noting that the SEC’s final decision on immediate Bitcoin trading funds is expected in January 2024, with markets anticipating regulatory approval in the first week of the coming year. If a group of Bitcoin exchange-traded funds is approved in January, it is expected to make it easier for both institutional and individual traders to invest in Bitcoin in 2024.
Additionally, the inactive supply of Bitcoin is seen as one of the major factors supporting the current price surge, with 69% of Bitcoin not being moved in the past year. This reduces Bitcoin’s trading volume and supports the bullish price scenario.
Ethereum’s price also rose by 3.92% to reach $2,055.03 on November 16, with a 2.05% increase in its 24-hour trading volume to $12.85 billion. Meanwhile, BNB’s price jumped by 2.98% to $252.61, with a 1.87% increase in volume to $920.7 million.
Other major cryptocurrencies also experienced price increases. XRP rose by 3.63% to $0.6518 over the past 24 hours, with a 30.82% decrease in volume to $1.45 billion. Solana’s price surged by 15.33% to $65.48, while Cardano’s price increased by 7.18% to $0.3825.
Meme coins also saw gains, with Dogecoin adding 5.32% to trade at $0.07671, while its trading volume decreased by 18.96% to $536.52 million. Shiba Inu added 4.53% to reach $0.000008766, with a volume decrease of 8.16% to $166.55 million.
In conclusion, optimism about the approval of immediate Bitcoin fund licenses boosted cryptocurrency prices, resulting in significant gains on Thursday. The total market capitalization of cryptocurrencies increased by 4.90% to reach $1.43 trillion, with a volume increase of 8.96% to $68.91 billion on November 16. The market’s fear and greed index reached 77, indicating “greed” or bullish sentiments among investors.