- Ether, BNB, and ADA are among the other top cryptocurrencies that have seen gains of 2% to 3%.
- The value of the entire cryptocurrency market shot above $1.5 trillion.
- After reaching 1.38 million for the first time in three months, XRP transaction activity has increased since mid-August 2023.
The U.S. Securities and Exchange Commission (SEC) may approve a Bitcoin exchange-traded fund (ETF), and there have been large inflows into digital asset funds. These factors have contributed to the price surge of Bitcoin, which reached a 19-month high above $42,000 on Monday.
Bitcoin is not the only cryptocurrency experiencing a surge; Ether, BNB, and ADA are among the other top cryptocurrencies that have seen gains of 2% to 3%. Just before the collapse of Terra led to a protracted crypto winter, the value of the entire cryptocurrency market shot above $1.5 trillion, a record not seen since May 2022.
Crypto-market
The market dynamics clearly show the impact of this surge. According to Matrixport’s research, traders have shifted rapidly towards Bitcoin, as evidenced by the fact that the futures premium for the cryptocurrency is currently higher than its spot price.
Perpetual futures’ premium over the spot price has recently increased to 10%–15%, and in some cases, even to 20%–30%. This pattern suggests a situation of panic buying, in which traders are increasing leveraged long positions or liquidating short positions.
With an additional $172 million in net inflows just last week, investors are also flooding cryptocurrency funds with cash. Bitcoin’s value has also increased due to favorable macroeconomic conditions, such as dovish remarks made by some Federal Reserve officials, a declining value of the dollar, and positive domestic data.
Market players are placing more and more bets on the Federal Reserve lowering interest rates in 2019. The CME FedWatch Tool projects an 86% chance of this happening by May.
On the other hand, futures market sellers may become weary of the pressure to sell, and Bitfinex analysts have cautioned about possible short-term difficulties for Bitcoin due to a lack of follow-through from spot markets.
All things considered, the future of Bitcoin looks bright, supported by falling overhangs, impending catalysts, loyal supporters, a supportive macro environment, and institutional participation that is still mostly in the background.
XRP investors are waiting for a settlement, even though they have won part of the lawsuit against Ripple filed by the US Securities and Exchange Commission (SEC). After reaching 1.38 million for the first time in three months, XRP transaction activity has increased since mid-August 2023.
The CEO of Ripple, Brad Garlinghouse, thinks the SEC will aggressively pursue legal action against other cryptocurrency projects if Ripple is not successful in winning part of the lawsuit and the executives’ case is not dropped.
With the dates of Judge Analisa Torres’ 2024 hearings approaching, there is still hope for a settlement for XRP holders. The price of XRP will probably try to recover to $0.75, with support located at the 10-day EMA, which is currently at $0.6209.
