Crypto Analyst Foresees Upward Trend for Bitcoin and Ethereum as Market Sees Influx of $10.97 Billion
- The crypto market defies expectations following fading Spot Bitcoin ETF rumors, as analyst predicts continued upward trends for Bitcoin and Ethereum.
- Over $10.97 billion in capital inflows in the crypto market, signaling bullish investor sentiment and potential market growth.
The anticipated wane in the crypto market following the fading rumors about the Spot Bitcoin ETF hasn’t materialized as expected. A notable revelation from a leading crypto analyst hints at the sustained growth of Bitcoin and Ethereum, the two largest cryptocurrencies by market cap.
Crypto analyst Ali Martinez shared insights on X (formerly Twitter), indicating a staggering $10.97 billion positive capital inflows into the crypto market, marking the highest level observed this year. This substantial capital influx signifies a robust bullish sentiment among investors towards these assets.
Martinez’s revelation isn’t isolated; further evidence suggests potential new money entering the market. Martinez noted the creation of over 700,000 new BTC addresses on November 4, primarily signaling likely new money flowing into Bitcoin. The analyst highlights the significance of Bitcoin’s network growth as a robust price predictor.
Factors Driving Market Revival
While the reason behind this market resurgence remains uncertain, speculations abound. Some attribute this surge to institutional investors positioning themselves ahead of potential approvals for Spot Bitcoin ETF applications by the Securities and Exchange Commission (SEC).
Another potential catalyst could be the upcoming Bitcoin Halving event expected in April 2024. Historically, Bitcoin has experienced significant price gains preceding Halving events, potentially contributing to the current price surge.
This surge of new money entering the crypto ecosystem is viewed as a positive development, potentially revitalizing altcoins that previously suffered due to market liquidity constraints.
In a notable contrast, Hong Kong’s Securities and Financial Commission (SFC) is contemplating the launch of exchange-traded funds (ETFs) directly linked to cryptocurrencies, showing a favorable regulatory stance compared to the United States’ SEC reluctance in approving Spot Bitcoin ETF applications.
This disparity in regulatory approaches underscores the varying treatment of the crypto industry across different regions. Overseas regulators, such as the SFC, are demonstrating an increasingly positive approach, showing a growing interest in the crypto market from these jurisdictions.
