This week was a great one for mega-cap cryptocurrencies. Bitcoin (BTC -1.21%), Ethereum (ETH -1.30%) and Dogecoin (DOGE -4.45%) all saw impressive growth, with an overall increase of 14.7%, 10.4%, and 15.4% respectively over the past 7 days.
It’s not shocking that Bitcoin was the one to lead the market, considering that it holds about half the total crypto market capitalization. This week, news emerged that a Bitcoin exchange-traded fund (ETF) could be launched sooner than expected, which could be the reason for the surge.
To understand what’s going on in the crypto world, let’s take a closer look at the news that drove these three cryptos higher this week, and what the future might hold.
The Sam Bankman-Fried trial, macro-data releases and token-specific news have been the talk of the town. But, it’s the news surrounding a potential Bitcoin ETF that has made the most noise. The Depository Trust & Clearing Corporation database listed the ticker IBTC, which could mean that Bitcoin is officially open for institutional investors.
Many reports have come out trying to estimate how much capital will be pumped into Bitcoin and the wider crypto sector from the ETF, but it’s too early to draw conclusions. Nonetheless, some speculate that altcoins such as Dogecoin could also benefit from the increased market sentiment.
So, where could these three tokens be headed from here? It’s possible that the market will stabilize once the ETF is launched, as it may be a case of “buy the rumor, sell the news”. For now, it might be wise to take a more cautious approach and wait to see whether these gains will be held.
