Top Reasons Why Bitcoin and Altcoins Are Up Today?
The post Top Reasons Why Bitcoin and Altcoins Are Up Today? appeared first on Coinpedia Fintech News
The cryptocurrency market saw a strong recovery, led by Bitcoin’s rise above $63,000 and significant inflows into Spot Bitcoin ETFs, surpassing $370 million. This resurgence prompted similar gains in major altcoins like Ethereum, Solana, and Cardano. The global crypto market cap increased by 5.11% to $2.34 trillion in the last 24 hours, indicating a broader market recovery despite a decrease in trading volumes by 18%.
Here’s a detailed look at the five potential reasons behind this resurgence:
Positive Economic Data
Firstly, recent US economic data, despite mixed signals, has improved investors’ confidence in the job market and manufacturing sector, increasing interest in cryptocurrencies. Manufacturing PMI fell to 49.2%, indicating a downturn, yet March job vacancies were strong at 8.5 million. U.S. employment rose 175,000, compared to 240,000 predicted, while the unemployment rate rose to 3.9%. Hourly wages rose 0.2% instead of 0.3%. Despite these numbers, investors are pleased with the labor economy and manufacturing sector, exhibiting trust in the crypto market amid economic uncertainty.
ETFs Are Boosting Adoption
Secondly, Bitcoin ETF flows have cooled and even increased, boosting investors’ confidence in the crypto sector. Market mood was impacted by $563.7 million in U.S. Spot Bitcoin ETF outflows on May 1. Recent data shows a recovery, with inflows falling to $34.4 million on May 2. On May 3, Bitcoin ETFs received $378.3 million, bolstering investor confidence.
ETH ETF’s Acceptance
Thirdly, Hong Kong’s acceptance of Bitcoin and Ethereum ETFs has boosted crypto prices. Huaxia, Harvest International, and Boshi Bitcoin ETFs raised $258 million in a week. Hong Kong is buying 4,218 BTC in three days, indicating a growing interest in digital assets. Even though it is still less than the first week of ETF trading in the US, it is stirring the stagnant crypto market.
Pension Funds Interest in Crypto & Buy the Dip
Moreover, pension plans increasingly consider investments in cryptocurrencies, signaling a shift in institutional investment strategy and further contributing to positive sentiment in the crypto market. Fidelity Digital Assets revealed that pension funds are discussing investing in crypto assets.
Manuel Nordeste from Fidelity highlighted this trend, noting more interest from family offices and high-net-worth individuals. While 80% of individuals favor crypto, only 23% of pension plans do, indicating a gap in adoption rates.
Finally, the concept of “buying the dip” has encouraged investors to seize the recent downturn in prices as a prime buying opportunity, especially in anticipation of future price appreciation following the Bitcoin halving event. Historically, cryptocurrencies have surged after halving events, contributing to investor optimism.
The recent market spike follows a pattern after Bitcoin halvings. Historical tendencies give investors hope for post-halving gains. The debut of spot Bitcoin ETFs in the U.S. and Hong Kong boosts hope.
We are excited to see a big rebound in crypto prices soon. Are You?
