Bitcoin on the Rise: Ethereum, Solana, ADA, and XRP Also Recover
Bitcoin is showing positive momentum again and reaching its highest level in a month. The prices of many altcoins are also picking up. However, the reasons for this temporary bull market phase appear to be primarily shaped by expectations and forecasts.
Is Bitcoin turning into a bull run? Or are the dynamics illustrated on Monday morning merely an interim recovery?
On the German stock market for Bitcoin and other cryptocurrencies, Bitcoin is quoted at $27,935, just before the $28,000 mark, according to Bybit. The overall Bitcoin price curve reflects an increase of nearly 6 percent over the past 24 hours. Ethereum, with an 8 percent increase in price compared to a day ago, is experiencing an even more significant upswing. Solana (SOL), Cardano (ADA), and Ripple (XRP) are posting similar gains.
Cryptocurrency prices are known for wild swings, but in the current case, there does not seem to be a single hard piece of news driving the price rally. Instead, a Thursday Wall Street Journal report draws attention, citing insiders claiming that the US Securities and Exchange Commission (SEC) is prepared to approve the first ETF for Bitcoin, likely next week. Such a financial product would likely bring entirely new dimensions of capital into the Bitcoin ecosystem.
Another decisive factor is the weakened US dollar, which serves as a counter-value for Bitcoin and other large cryptocurrencies. In the Forex market, the euro is being exchanged for over 1.065 US dollars.
For now, the crypto market is also benefiting from positive reports from the relative macroeconomic environment. According to Bybit, US labor market data from Friday has shown continued recovery. This could also lead to a more optimistic or neutral US Federal Reserve (Fed) stance regarding interest rates.
With these diverse, often speculative forces currently impacting the crypto market, investors remain cautious. In retrospect, it is difficult to assess exactly how, when, and why substantial price movements occur or reverse.
Overall, optimism is now prevailing, which might speak for a return of a sense of an unbridled bull market (FOMO – fear of missing out). For Bitcoin to really soar, however, the $30,000 mark should be exceeded; this has not yet been achieved. Meanwhile, for ETH, the all-time high remains far away at around $4,800, but other levels like the $2,000 have yet to be overcome first.
These aspects should be closely monitored as they will determine the medium-term outlook for Bitcoin and the entire crypto universe.
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