The cryptocurrency market saw a significant increase in the past 24 hours, reaching about $2.75 trillion during Tuesday’s Asian session. Leading this surge was Ethereum (ETH), which jumped by 20% to around $3,699. The ETH/BTC pair also rose over 13%, indicating a strong shift in investment from Bitcoin to Ethereum.
Ethereum’s impressive rise highlights its key role in the recent crypto rebound. This shift has led to a rapid movement of capital within the market, with many investors moving from Bitcoin to Ethereum.
While all seems good with Ethereum, Bitcoin – not so much!
Bitcoin’s market dominance is showing signs of a potential downturn, indicated by a bearish divergence on the Relative Strength Index (RSI). This technical signal suggests Bitcoin might face further declines soon.
The market has been boosted by news that the U.S. Securities and Exchange Commission (SEC) may soon approve spot Ether ETFs. This could be a major milestone for the wider altcoin market, acting as a strong bullish trigger.
Political Shifts
Politically, the Biden administration has softened its stance on cryptocurrency, in contrast to former President Donald Trump’s approach. Trump’s recent endorsement of the crypto industry has also drawn significant attention ahead of this year’s election.
Recently, Bitcoin and Ethereum traded below $60,000 and $3,000, respectively, leading many derivatives traders to expect further drops. However, the market rebound has led to the liquidation of over $350 million in short positions, causing many traders to start buying instead, which triggered a short squeeze.
US Congressional Efforts
The U.S. Congress has been working harder to regulate the cryptocurrency industry, aiming to set clear guidelines before the November elections. This regulatory clarity is expected to attract more institutional investors.
India’s Move Towards Crypto Regulation
In India, the government is moving towards adopting and regulating cryptocurrency, following Europe’s Markets in Crypto-Assets (MiCA) framework. This clearer regulatory environment is encouraging more institutional investors to enter the crypto market.
Also Read : Top Altcoin Set To Outperform This Week as Crypto Bull Run Begins
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