Bitcoin And Ethereum Rally Not Over: Crypto Capital Inflows Reach One-Year High
November 06 2023 - 4:40AM
NEWSBTC
Many had speculated that the rally in the crypto market was going
to wane following the Spot Bitcoin ETF rumors fading out. That
hasn’t been the case, though, and a recent revelation from a
prominent crypto analyst suggests that the two largest
cryptocurrencies by market cap, Bitcoin and Ethereum, could
continue to see an upward trend. New Liquidity Coming Into
The Market Could Boost Bitcoin, Ethereum In a post shared on his X
(formerly Twitter) platform, Crypto analyst Ali Martinez revealed
that the crypto market has seen close to $10.97 billion in positive
capital inflows, which represents the highest level this year.
According to him, this inflow of capital into crypto could
potentially mean that investors are heavily bullish on these
assets. Related Reading: Shiba Inu Whales Bet Big As
Shibarium Grows – Road To $0.1? Source: X Meanwhile, there is also
further evidence that the market, most especially Bitcoin, could
see an influx of new money in the coming days, as Martinez
mentioned in a subsequent post that over 700,000 new BTC addresses
were created on November 4. The analyst believes that such a
happening is an important milestone as Bitcoin’s network growth is
one of the best price predictors. Source: X It is uncertain
what could be behind these inflows and the revived interest in the
crypto market. However, some believe that it could be institutional
investors who are taking positions ahead of a possible approval of
the pending Spot Bitcoin ETF applications by the Securities and
Exchange Commission. Others believe that the Bitcoin Halving
could be contributing to the resurgence in Bitcoin’s price and the
crypto market by extension. Historically, Bitcoin has seen
significant gains in the period leading up to the Halving event.
The next Halving is expected to happen in April 2024.
Whatever the reason, there is no doubt the influx of new money into
the ecosystem is a positive development. A particular crypto
analyst had once noted that many altcoins were tepid due to the
lack of liquidity in the market and that they could pick up once
there is renewed interest in the market. Institutional Interest
Coming From Overseas According to a Bloomberg report, Hong Kong’s
financial regulator, the Securities and Financial Commission (SFC),
is considering allowing the launch of exchange-traded funds (ETFs)
that allow investors to invest directly in the cryptocurrency
itself (Spot trading). Related Reading: Bitcoin Falls Under
$35,000 But 86% Of Supply Remains Unmoved – Temporary Setback? This
development comes amid the US SEC’s reluctance to approve the
pending Spot Bitcoin ETF applications, which would allow US
investors to have direct exposure to the flagship cryptocurrency,
Bitcoin. This further highlights the stark contrast between
the treatment that the crypto industry has received overseas and in
the United States. The positive approach taken by regulators
overseas is, however, commendable as the crypto industry continues
to see interest from such regions. BTC bulls try to reclaim
$35,000 | Source: BTCUSD on Tradingview.com Featured image from
iStock, chart from Tradingview.com
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