Altcoins
Top Reasons Why Bitcoin and Altcoins Are Rising Today
The cryptocurrency market is booming thanks to Bitcoin surpassing $63,000 and $370 million invested in Spot Bitcoin ETFs. This surge lifted other major altcoins like Ethereum, Solana, and Cardano, sending the global crypto market cap soaring 5.11% to a whopping $2.34 trillion in just 24 hours, despite a slight 18% drop in transaction volumes.
The key question: why?
What Caused Crypto’s Comeback?
Economic boost to the United States
Despite some economic ups and downs, recent US data has restored investor confidence, particularly in employment and the manufacturing sector. Although the manufacturing sector saw a slight decline, with the PMI falling to 49.2%, job vacancies in March remained strong at 8.5 million. Employment increased by 175,000, slightly below forecasts, while the unemployment rate climbed to 3.9%. Hourly wages rose 0.2%, slightly below the 0.3% expected.
Despite these twists and turns, investors remain optimistic about employment and the manufacturing industry, showing their confidence in the crypto market amid economic uncertainty.
Bitcoin ETF Variations
Investor sentiment has shifted with the flow of Bitcoin ETFs, experiencing both declines and rises, significantly boosting confidence in the crypto sector. Notably, there was a significant outflow of $563.7 million from US Spot Bitcoin ETFs on May 1. However, recent data shows a remarkable turnaround, with inflows falling to $34.4 million on May 2, only to rebound to $378.3 million on May 3, renewing the investor. trust.
Hong Kong embraces crypto ETFs
Hong Kong’s embrace Bitcoin and Ethereum ETFs have been game changers for crypto prices. The Huaxia, Harvest International and Boshi Bitcoin ETFs together amassed a combined $258 million in one week. Hong Kong’s acquisition of 4,218 BTC in three days highlights growing interest in digital assets. Although still behind the United States in ETF trading volume in its first week, it has breathed new life into the previously sluggish crypto market.
Retirement plans considering crypto
One notable trend is pension plans considering crypto investments, signaling a shift in institutional investment strategy and reinforcing positive sentiment in the crypto market. Fidelity Digital Assets has revealed growing pension fund interest in crypto assets. Fidelity’s Manuel Nordeste noted increased interest from family offices and high-net-worth individuals.
However, while 80% of individuals favor crypto investments, only 23% of retirement plans have embraced the idea, revealing a gap in adoption rates.
The “buy the dip” trend is gaining favor
The idea of “buying the dip” has encouraged investors to seize recent price declines as prime buying opportunities, especially with the Bitcoin Halving Event on the horizon. Historical data shows that cryptocurrencies tend to rise after halving events, fueling investor optimism.
The recent crypto surge mirrors past patterns seen after the Bitcoin halving. Historical trends hold out hope for a halving of gains, coupled with the introduction of spot Bitcoin ETFs in the US and Hong Kong.
Also discover: Fidelity Reveals $5 Trillion Crypto Potential for Retirement Plans: What You Need to Know
What do you think of the recent surge? Are you bullish or bearish?