Search
Close this search box.

Crypto Rally Continues Amidst Falling Equities

SHARE

SHARE

Table of Contents

Cryptocurrencies Continue Their Upswing

Bitcoin (BTC) witnessed a 5% surge on Wednesday afternoon in New York, escalating its 5-day rally to 13%. The cryptocurrency briefly eclipsed the $30,000 mark before settling at around $29,870 at the time of the report. Meanwhile, Ethereum (ETH) also experienced an upward trajectory, with a Wednesday gain of 3%, culminating in a near 8% increase since June 17.

Equities Suffer Amid Anticipated Interest Rate Changes

In contrast, the stock market painted a different picture. Following modest gains in the past few days, the Nasdaq Composite and the S&P 500 indexes reported losses of 0.7% and 0.5%, respectively, on Wednesday. Investors are anxiously observing Washington for any potential indications of interest rate fluctuations.

DataTrek Research founder, Nicolas Colas, pointed out that market observers are waiting for signals that the Federal Reserve may soon halt its interest rate hikes. Markets are banking on such a confirmation during Fed Chair Jerome Powell’s inaugural day of Congressional testimony to bolster stock performance.

Bitcoin Surges Amidst Increasing Institutional Interest

The crypto market rally has been linked to growing institutional interest. For the first time since May, Bitcoin soared above the $29,000 mark on Tuesday, breaking past a significant resistance level. More traditional firms are moving to apply for bitcoin spot ETF products, suggesting an uptick in institutional interest.

Santander, one of the world’s largest banks, recently tweeted about Bitcoin’s Lightning Network. “This wasn’t confined to a significant digital assets division,” noted Noelle Acheson, author of “Crypto is Macro Now” and former head of market insights at Genesis.

BlackRock Proposes iShares Bitcoin Trust Launch

In another significant development, BlackRock proposed the initiation of an iShares Bitcoin Trust. The decision indicates BlackRock’s belief in the potential for approval of a spot Bitcoin ETF.

Analysts at Matrixport commented, “While crypto still needs more than favorable macroeconomic tailwinds and institutional inflows into Bitcoin, this is a welcoming development that reminds investors that crypto is here to stay.”

Binance.US Faces Challenges Amid Market Watchdogs’ Scrutiny

Binance.US, the American division of the global crypto exchange, faces many challenges amidst scrutiny from market watchdogs. Interestingly, the platform displayed Bitcoin’s price at a staggering $138,000 for its Tether (USDT) market, almost quadrupling the spot prices shown on other platforms.

This sudden surge, although short-lived, suggests that someone made a significant market purchase of Bitcoin with USDT. The ensuing poor liquidity resulted in all realistic sale orders being filled instantaneously, causing bitcoin prices to skyrocket to new all-time highs.

Conclusion

In summary, while the equities market is experiencing a downturn, cryptocurrencies like Bitcoin and Ethereum continue to surge. The ongoing rally seems to be fueled by growing institutional interest, with traditional firms like BlackRock seeking to launch Bitcoin-related products and global banks like Santander acknowledging the relevance of crypto technology. However, challenges persist in the crypto space as exchanges like Binance.US face regulatory scrutiny and operational issues. As the market awaits indications from the Federal Reserve regarding interest rates, the enduring sentiment is that cryptocurrency has firmly entrenched itself in the financial landscape. The sustained performance of Bitcoin and Ethereum attests to the growing acceptance and resilience of digital assets.

SHARE

Related Post

Comments are closed.

Buy / Sell Bitcoin

Rating: 89%

Claim up to $8,800 in Bonus

binance

Rating: 85%

World’s largest crypto exchange

Our Favourite Trading Platforms

bybit-logo

Rating: 94%

Claim up to $30,030 in Bonus

100x Leverage

prime-xbt

Rating: 91%

Claim up to $7,000 in Bonus

100x Leverage

Follow Us