Why are Crypto prices rising, and will they keep going up?

The past few days have been a whirlwind in the crypto market, with Bitcoin (BTC) and Ethereum (ETH) experiencing significant price increases. This blog post dives into the recent cryptocurrency boom, exploring the factors behind the surge and what it might mean for the future of cryptocurrencies. Keep reading till the end to stay informed. 

Recent storm in crypto market 

Ethereum (ETH)

In the past 21 hours, the cryptocurrency market saw a significant increase, reaching about $2.75 trillion during Tuesday’s Asian session. The main driver of this boom was Ethereum (ETH), the world’s second largest cryptocurrency by market capitalization, which experienced a jump to approximately $6,800, an almost 20% increase. This surge prompted many investors to shift from Bitcoin (BTC) to Ethereum. 

The steady increase in the prices is potentially fueled by anticipation of the approval of Ethereum ETFs by the SEC. These ETFs would allow investors to gain exposure to Ethereum without directly buying and holding the cryptocurrency itself. Ethereum’s magnificent rise emphasizes its value in the crypto rebound, contributing to rapid capital movement in the market.

Bitcoin (BTC)

During Tuesday’s training session, Bitcoin (BTC) surged over 6%, reaching $71,178. This increase was fueled by strong buying activity and the approval of Bitcoin’s ETF spot. The total net inflow of Bitcoin ETFs exceeded $241 million on May 20th, with BlackRock’s Bitcoin ETF attracting $66 million and Fidelity’s BTC ETF recording a net inflow of about $64 million.

Bitcoin’s recent surge past the $71,000 mark brings good news for investors. This price increase is likely driven by speculation surrounding the potential approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC). Similar to Ethereum ETFs, a spot Bitcoin ETF would simplify the process for mainstream investors to enter the cryptocurrency market, potentially driving further demand and price increases.

Could ETH outperform BTC?

Analysts believe that Ethereum has the potential to outperform Bitcoin for the following two reasons:

1. Versatility: Ethereum is more versatile than Bitcoin and can be used to develop a wide range of decentralised applications, which are powering innovative products and services in a new generation. In the long run, this could drive Ethereum’s demand significantly.

2. Ethereum 2.0: There is speculation about Ethereum’s major update, called Ethereum 2.0, which is designed to address scalability issues and improve transaction speeds. Once Ethereum 2.0 is fully implemented, it could become a much more attractive option for businesses and consumers.

Market on the rise

The bullish trend extends beyond just Bitcoin and Ethereum. The entire cryptocurrency market has witnessed a significant surge, with a total market capitalization reaching an impressive $2.61 trillion within the last 24 hours. Notably, Ethereum isn’t merely keeping pace with Bitcoin; it’s experiencing a substantial increase of its own. Additionally, various altcoins like BNB, Solana, XRP, Shiba Inu, Avalanche, and Cardano are contributing to the overall market momentum.

Conclusion

The current market presents a highly bullish sentiment for cryptocurrencies. However, it’s crucial to remember that the market can be unpredictable. While technical indicators and current sentiment paint a promising picture, unexpected events can still occur.

For those interested in staying updated on the latest movements and insights within the crypto market, consider following Boztech on LinkedIn or visiting Boztech Blogs.