- Bitcoin and Ether rally to new 2023 highs, signaling a potential end to the crypto bear market.
- Institutional interest in Ether, exemplified by BlackRock’s ETF plans, boosts market confidence.
- Record inflows into the crypto market over the past 10 weeks indicate a bullish sentiment.
The crypto market is witnessing a significant upswing, with Bitcoin and Ether leading the charge to new highs in 2023. On December 3, Bitcoin topped $40k for the first time in 19 months and further surged to $42k on December, marking a 20-month high. This rally is mirrored by Ether and several altcoins, all registering notable gains.
The increase in crypto prices follows a trend of rising withdrawals from centralized exchanges, with over 20,000 Bitcoin withdrawn since November 15. This reduction in exchange-held Bitcoin balances coincides with the recent price rise, suggesting a decrease in selling pressure as traders take direct custody of their holdings.
The market’s buoyant mood is further evidenced by the Bitcoin Fear and Greed Index, which currently indicates ‘greed’ at a monthly high. This shift in sentiment is a stark contrast to the cautious outlook that prevailed for much of the year.
A pivotal moment came on November 9, when BlackRock confirmed plans for an Ether ETF, igniting an over 12% surge in Ether’s price and outperforming Bitcoin for the first time in months. This move by BlackRock is seen as a harbinger of growing institutional interest in cryptocurrencies beyond Bitcoin, potentially leading to significant capital influx into the Ether market.
The last 10 weeks have seen a record $1.76 billion in crypto market inflows, the highest since October 2021. Alongside this, trading volumes and the total value locked (TVL) in DeFi platforms have soared, with the TVL reaching $49.7 billion on December 4, a multi-month high. As a result of these developments, the crypto market seems to be headed in a positive direction.
With increasing institutional interest and improved trading volumes, there’s growing optimism that the bear market might be coming to an end, paving the way for a brighter future in the crypto industry.
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