The broader crypto market has seen recovery trends from September lows that have sent the price of top coins rallying. Bitcoin, Ethereum, and Solana have recorded some of the biggest gains so far. This has been due to a number of factors that have greatly affected the movement of cryptocurrencies. Bitcoin, in particular, has seen the most significant price movements, with Ethereum and Solana not too far behind.
Institutional Investors Back On The Bull Train
Institutional investors are a big reason behind the recent price rally. The crypto market has now recorded eight straight weeks of inflows totally above $600 million. The market has greatly benefitted from this as top coins have rallied to new heights in recent weeks. Bitcoin alone saw $225 million in inflows for the past week and altcoins brought a couple of million in inflows in the same time period.
It signals that institutional investors are beginning to get back into the market en masse and this has driven up faith in cryptocurrencies where there had been so little. Solana and Ethereum led altcoins in inflows for the period. Both altcoins have led the altcoin market in recorded gains. With both assets bounding towards their previous all-time highs.
BTC breaks above $60K | Source: BTCUSD on TradingView.com
The supply shock expected across these digital assets as hold sentiment grows among investors has also helped in driving up their value. This bull rally has seen some marked differences from previous bull markets. Instead of investors moving assets to exchanges to sell off, the market is seeing more exchange outflows than inflows, suggesting that investors are holding onto their cryptocurrencies despite growth in value.
Bitcoin ETF Rumors Driving Market
The SEC is expected to make a decision on Bitcoin ETF approvals soon. Speculations are that the SEC will approve a bitcoin ETF before the month runs out and it is expected that this will be done with no opposition from the regulatory body.
In light of this, the market has surged in expectation of the first approved bitcoin ETF in the United States. An approval carries major connotations for the crypto market as this will bring crypto trading to the mainstream. Investors will be able to invest in a bitcoin ETF in the United States and will be able to add it to investment portfolios like ROTH.
Bitcoin briefly touched $60K on Friday as the SEC’s ETF decision draws near, while Ethereum and Solana have made good progress following behind BTC’s gains in the market. If the market maintains the current momentum, all three assets are expected to touch their previous all-time highs by next week and then continuing to rally towards record highs.
Featured image from Managing Upwards, chart from TradingView.com