Bitcoin reached a six-week high, spurred by institutional buying and ETF inflows exceeding $1 billion. Ether rose by 14%, maintaining key price levels. The overall cryptocurrency market cap surged to $2.94 trillion. Market trends are positive due to favourable economic conditions, though caution is advised amidst potential volatility.
On Wednesday, Bitcoin prices surged to a six-week high, increasing six percent to $93,455 (approx. Rs. 79.8 lakh) according to CoinMarketCap. In Indian exchanges, Bitcoin saw a nearly seven percent rise within 24 hours, trading at $93,680 (around Rs. 80 lakh). This uplift coincided with positive trends in most altcoins, indicating overall market strength.
The driving force behind this rally is attributed to heightened institutional investment, with Bitcoin spot ETFs experiencing net inflows surpassing $700 million (approx. Rs. 5,984 crore), totalling over $1 billion (approx. Rs. 8,549 crore) in a single week, as stated by Alankar Saxena, Co-founder and CTO of Mudrex. Additionally, a reduction in exchange inflows suggests diminished selling pressure, which is vital for maintaining market momentum, while the Fear and Greed Index indicates a ‘Neutral’ sentiment among retail investors.
In another notable development, Ether prices climbed by 14 percent, trading at $1,800 (approx. Rs. 1.53 lakh) globally and $1,815 (approx. Rs. 1.55 lakh) on Indian exchanges. Despite experiencing a 65 percent correction over the past four months, Ether remains resilient, having upheld the critical support level at $1,350 (approx. Rs. 1.15 lakh), according to the ZebPay Trade Desk, projecting potential advancement towards $2,100 (approx. Rs. 1.79 lakh).
The crypto market overall saw a 6.95 percent increase in market capitalization, reaching $2.94 trillion (approx. Rs. 2,51,25,195 crore). This uptick is partly attributed to a drop in the US dollar index to a three-year low, alongside the appointment of Paul Atkins as SEC Chairman, signalling potential regulatory enhancements.
Despite these positive trends, caution is warranted as market volatility may re-emerge. Some asset prices including Binance Coin, Leo, and Stellar decreased on Wednesday. Concurrently, comments from US economic leaders hinting at de-escalation in US-China tensions contributed to a positive shift in both traditional assets and cryptocurrencies. Renewed enthusiasm for AI-focused and meme coins reflects a wider market revival, as remarked by Riya Sehgal, Research Analyst at Delta Exchange.
