The cryptocurrency market has been slow for several months now. The recent increase suggests a favorable and rapid outcome to this situation. Are we finally seeing the end of the bear market and the start of a new bull run?
+ 20% on ETH, the cryptocurrency market is recovering
This end of October holds some nice surprises for us and gives cryptocurrency investors hope for the year 2023.
Over the past week, the price of cryptocurrencies has been on the rise and the overall market mood looks promising.
BTC, the cryptocurrency queen, gained nearly 8% in just 1 week. The token had been sailing under $ 20,000 for several months and could not cross this fateful threshold.
ETH, the eternal second, meanwhile exploded higher with a 20% gain over the same period.
While the expected momentum following the discontinuation of The Merge, it was at the end of October that the Ether token regained its pre-Merge levels.
In fact, Ethereum went back over $ 1,500 for a while before starting a dip.
The two leaders of the cryptocurrency market aren’t the only ones taking back color. The market as a whole seems to wake up from a long hibernation.
Therefore, the TotalCap shows a 7.5% increase over the past 7 days. An increase that allowed it to recover the levels lost in mid-September.
Volumes also exploded above 150 billion. By way of comparison, the latter fluctuated between 65 and 95 billion at the beginning of October.
Why is the cryptocurrency market on the rise?
This good news raises the question of “why this general increase?” “.
There are actually several reasons, of which here are the main three.
The first comes from traditional finance. Indeed, global markets, particularly the US, are plagued by reassuring and positive news.
The Nasdaq, for example, was seen taking 6% in 5 days, with a 671 point gain, before retiring, but keeping 1.76% in a week.
The observation is the same on most stock market indices.
This increase in the market as a whole is due to the publications of the companies which for the most part exceed the expected consensus.
However, it remains very relative and the upcoming Fed meeting risks disrupting this resurgence of the cryptocurrency market for better or for worse.
The second reason turns us to the whales, these major cryptocurrency investors who hold large amounts of tokens.
These triggered a massive buying phase, particularly on Ethereum.
Finally, this excessive investor confidence is also due to the British advance in terms of regulating the cryptocurrency market.
Indeed, a part of the British parliament this week voted by a majority in favor of ” treats cryptocurrencies like other forms of financial assets“.
This advance has not yet been adopted and must continue its British legislative path. However, it marks a new milestone in the mass adoption of cryptocurrencies and paves the way for further measures on a global scale.
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