The cryptocurrency market has discovered new momentum by a latest rally that propelled Bitcoin’s worth in direction of the $35,000 mark.
The surge in worth has not solely caught the eye of buyers however has additionally sparked a renewed curiosity in crypto buying and selling, resulting in a big improve in day by day trade volumes.
In keeping with knowledge from The Block, the seven-day shifting common for spot trade volumes throughout respected platforms breached a formidable $24 billion on October 26, a degree not seen because the finish of March.
The sudden resurgence in market exercise will be attributed to a number of elements.
One key driver is the excitement surrounding the potential launch of a spot Bitcoin exchange-traded fund (ETF).
Advocates consider that the introduction of a spot Bitcoin ETF would pave the way in which for an inflow of capital into the market, creating new avenues for funding and additional propelling the worth of Bitcoin.
As merchants await the launch of an ETF, the ensuing hypothesis has injected a degree of volatility into the market not seen since April.
Some Imagine Bitcoin Bull Market Has Began
As reported, crypto monetary companies platform Matrixport believes Bitcoin’s fifth bull run has already began and will see the flagship cryptocurrency attain a formidable $125,000 by December 2024.
“This bull market formally commenced on June 22, 2023, when Bitcoin reached a brand new one-year excessive for the primary time in a yr. Traditionally, when this sign was triggered, Bitcoin has delivered, on common, returns of +310%,” the corporate mentioned in a report final week.
In one other affirmation of the Bitcoin bull market, the main cryptocurrency’s market dominance has reached 54%, its highest degree in additional than two and a half years.
The regular improve in Bitcoin dominance, ranging from round 38% at first of the yr, comes amid its year-long rally, with the flagship cryptocurrency surging by 81% because the begin of 2023.
In the meantime, Matrixport has predicted a significant Bitcoin rally if a spot ETF hits the market.
Evaluating this to the valuable metals ETFs, which have a market cap of round $120 billion, assuming that 10-20% of treasured steel ETF buyers take into account diversifying right into a Bitcoin ETF as a hedge towards financial debasement and inflation, Matrixport mentioned we might witness an influx of $12 to $24 billion into the Bitcoin ETF.
“If Tether’s market cap will increase by $24 billion, performing as a proxy for potential ETF inflows, Bitcoin’s worth would rise to $42,000, representing a conservative estimate.”