Why Is Crypto Up? Which Coins Are Soaring, Which Are Dying And What Does It Mean For Investors?

While hundreds of millions of dollars https://www.momentumcapital.co.za/ have flowed into several new spot Ethereum ETFs, the Grayscale Ethereum Trust experienced roughly $1.2 billion in net outflows in its first few days of trading. Grayscale experienced similar sizable outflows from its Grayscale Bitcoin Trust (GBTC) following the launch of spot Bitcoin ETFs back in January. Nevertheless, Bitcoin (BTC) prices gained ground in July thanks in part to major presidential election headlines that could open the door to a more crypto-friendly White House in 2025. The U.S. Securities and Exchange Commission (SEC) finally approved the first ever spot Ethereum (ETH) exchange-traded funds (ETFs) in July. That development, however, hasn’t been the bullish catalyst Ethereum investors hoped it would be.

July Crypto Market Performance

The Grayscale Ethereum Trust held about 2.9 million ether worth about $10 billion prior to its uplisting to the New York Stock Exchange from the OTC Market in July. Net outflows from the ETHE fund may continue to weigh on Ethereum prices. Grayscale’s GBTC ETF ultimately lost about 50% of its Bitcoin assets in its first few months of trading, suggesting the Grayscale Ethereum Trust could be in for more heavy outflows in August. With more than six years’ experience an editor, investing specialist Lisa Dammeyer brings a keen eye for detail and fact-checking chops to everything she works on. Her work over the past four years at various financial publications has helped investors sort through the news and make informed decisions about their money. The first spot Ethereum ETF decision is expected on Thursday for investment management firm VanEck, with several others to follow this year.

Harris Vs. Trump A Win-Win?

• When the big players, the major financial institutions, and corporations jumped into the crypto game, their influence was undeniable.
• While inflation is on average 2% each year, recent stimulus spending is poised to greatly increase the level of inflation and decrease the dollar’s purchasing power.
• While hundreds of millions of dollars have flowed into several new spot Ethereum ETFs, the Grayscale Ethereum Trust experienced roughly $1.2 billion in net outflows in its first few days of trading.
• All in all, crypto’s inherent volatility provides ample opportunities for speculators.
• BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency.

Crypto has a history of meteoric growth, and this history often fuels speculation and optimism. Investors recall instances where early adopters turned small investments into massive fortunes, and they hope to replicate that success. These success stories lead to a "get rich quick" mindset, drawing more people into the market. Conversely, when the demand wanes or when the supply of a particular cryptocurrency becomes abundant, prices can decrease.

For example, although bitcoin is hovering around $19,000, it has steeply declined from its all-time high of $68,990 in 2021. After a turbulent year in the cryptocurrency space, it looks like the prices of some of the bigger coins are finally showing signs of recovery in 2023. Experts estimate that about $1.4 trillion was erased from the crypto space in 2022. With the collapse of Luna and the FTX implosion, there were concerns that we could https://www.calculator.net/investment-calculator.html be in for a long crypto winter. Some investors are concerned repaid creditors could cash out 10 years of huge Bitcoin market gains en masse, potentially flooding the market with Bitcoin and driving prices significantly lower.

Why Is Bitcoin Going Up Right Now?

One of the biggest crypto market catalysts in the next four months will likely be the U.S. presidential election, which was shaken up in a major way in July. Roughly six months after the SEC approved the first spot Bitcoin ETFs, the SEC formally approved the first batch of spot Ethereum ETFs in July. Bitcoin prices are up 61.1% year-to-date in 2024, putting the cryptocurrency on track for its second consecutive year of sizable gains. Among the 10 largest cryptocurrencies by market capitalization, XRP (XRP) was the best July performer with a 26.9% gain.

Supply and Demand Dynamics

Investors should keep a close eye on these decisions, as they will have a significant impact https://www.bankrate.com/investing/best-investments/ on bitcoin and the broader crypto market for the rest of 2024. However, Bitcoin’s price surge in 2017 was followed by a significant correction in 2018, with its price declining sharply from its peak. Despite this, the events of 2017 solidified Bitcoin’s position as the leading cryptocurrency and paved the way for its continued growth and adoption in the years to come.

Cryptocurrency Performance for 2020

This stamp of approval, in turn, instills confidence in the broader market. Market sentiment can be influenced by various factors, including news, social media trends, and even statements by influential figures[1]. For example, if a prominent figure expresses enthusiasm about a particular crypto asset, it can ignite a buying frenzy, driving prices higher – which is exactly what happened to Dogecoin. There’s also speculation that investors could return to the speculative assets now that it feels like the Fed could https://www.reddit.com/r/passive_income/comments/1bpd2s7/how_can_i_make_money_online/ slow down with the rate hikes. We saw bitcoin finally return to the $19,000 mark for the first time since Nov. 8, 2022, after the FTX implosion. Advisers for the exchange have been sorting through the confusing financial records to figure out how to proceed.

Cryptocurrency

Cryptocurrencies often experience upward momentum due to several key factors. Growing adoption, the global economic crisis, scarcity in supply, speculation, institutional investments, technological advancements in blockchain technology, and other factors all play a role. These factors contribute to increased demand, confidence, and excitement in the market, which, in turn, leads to rising cryptocurrency prices. To avoid risking your assets during these surges, trading on reputable exchanges, such as Binance, Bybit, or Kraken, is a must. The uptick in bitcoin and ether, the world’s two biggest cryptocurrencies by market capitalization, continues a broader rally in recent months across the digital asset economy.

At this point, Bitcoin experienced a hard resistance and it failed to push through this stage. Our community is about connecting people through open and thoughtful conversations. We want https://www.momentumcapital.co.za/ our readers to share their views and exchange ideas and facts in a safe space. The deeper-than-some-anticipated modification isn’t going to stop there, some believe. For believers in this hypothesis, that’s all the more reason to load up on the risky stuff. Wayne Duggan has a decade of experience covering breaking market news and providing analysis and commentary related to popular stocks.