Cryptocurrency experienced a bull run in the past week, due to optimism around Bitcoin exchange-traded funds (ETF). Bitcoin rose by 12.5% and was trading at $43,387 on Friday, according to CoinMarketCap. Ethereum also saw a 12.7% increase and was trading at $2,356. Bitcoin even reached $44,000 for the first time in 18 months.
Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, said the Blackrock ETF application being granted its $100,000 seed funding caused speculation of an approval, which further boosted the cryptocurrency market and resulted in the market cap reaching nearly $1.6 trillion.
The broad crypto market was largely green, with token-specific developments yielding high returns. For example, Solana’s surged past $70, driven by increasing network activity and Total Value Locked (TVL). Furthermore, the Solana ecosystem saw successful airdrops with JITO!.
In addition, the Centre revealed in a reply to a question in Parliament that 28 virtual digital asset (VDA) or crypto service providers had registered with the Financial Intelligence Unit (FIU).
However, the crypto market has seen a minor correction in the past two days, likely due to profit booking. The CoinDCX research team noted how BTC encountered a dip to $43,000, pulling back from its swift ascent to nearly $45,000 earlier in the week. This implies traders opted to secure profits after the largest crypto’s breakout from $38,000.
Rajagopal Menon, Vice President at WazirX, suggested the possibility of a bull trap has started creeping into the market, which could lead to short selling unless investors continue to wait for ETF approvals. Meanwhile, Shivam Thakral, CEO of BuyUcoin, believes the current market momentum will be sustained due to positive global macroeconomic factors.
