The cryptocurrency market soared today, with the prices of Bitcoin (BTC), Ethereum (ETH), Cardano (XRP), Solana (SOL), and several altcoins rising as positive investor sentiment towards cryptocurrencies continues to rise. The positive growth was led by Ethereum, which reached a 6-month high following news of the confirmation of BlackRock’s NASDAQ Ethereum ETF.
Let’s examine three major factors affecting today’s cryptocurrency market rally.
Institutional investors and fund managers are looking to invest in Ether
On November 9, BlackRock’s plans to create an Ethereum spot trading fund (ETF) were confirmed through a Form 19b-4 filed with the US Securities and Exchange Commission (SEC). Following the confirmation, Ethereum’s price rose 12.2%, outperforming Bitcoin for the first time in months.
BlackRock’s potential entry into the ethereum market indicates that institutional investors are becoming more interested in the cryptocurrency market. Institutional participation in the cryptocurrency market could lead to a significant influx of capital into the ether market, causing prices to rise further.
In addition to BlackRock’s potential Ether ETF, Bloomberg analyst James Seyphart says at least five companies will try to gain SEC approval.
There are 5 other Eth files you are aware of:@vaneck_us @ARKInvest/ @21shares @hashdex @InvescoUS/ @galaxyhq
andddd @greyscaleFile to convert $ETHE.In no particular order.
– James Seyff (@JSeyff) November 9, 2023
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Increased institutional interest is improving sentiment across the market. Activity in the options market suggests that Ethereum’s outperformance is not just a one-time event and could continue in the near term. The Chicago Mercantile Exchange (CME), used by major institutions, overtook Binance futures on November 9 after wiping $1 billion in open interest from the market.
We have now been officially institutionalized
It is worth noting that this major regime change occurs on the day Blackrock confirmed that its ETFs would be approved
Old Guard market makers implemented body bags in both options and offenders this month
The king is dead, long live the king https://t.co/vuYtIOPEmB
– JJ Janitor (@JLabsJanitor) November 9, 2023
Institutional investors are not the only group feeling optimistic about the cryptocurrency market. As measured by the Bitcoin Fear and Greed Index, improving sentiment can also be seen in retail trading, with a 23-point increase observed over the past month.
Total value unlocked and higher trade volumes
Positive sentiment in the cryptocurrency market is spreading throughout the ecosystem. Trading volume in the Bitcoin and cryptocurrency market reached $44.1 billion on November 9. This increase is the highest level of total trading volume since March 14.
Trading volume isn’t the only metric breaking multi-month highs. Total value locked (TVL) on November 9 reached its highest level since June 3. The increase in Total Value Locked (TVL) to $46.5 billion represents a 3.7% increase over the 24-hour period.
There is optimism surrounding the increase in volume, which could help break a two-year losing streak in November when it comes to returns.
Related: Is it Altsisson? Altcoin’s 30-day performance and total market cap are bullish
While Bitcoin and altcoins still face downside risk events that could impact the price, growing institutional interest and improving trading volumes are strong indicators that the bear market may be over.
Overall, cryptocurrency markets will likely continue to experience price volatility. While positive institutional interest provides a nice short-term upside in cryptocurrency prices, the market’s reaction to any new enforcement actions or economic downturn will be the real determinant of the direction the market chooses to take.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.