What happened?
The cryptocurrency market saw a rise of 1.5% with the market capitalization increasing to $4.12 trillion. The top 100 coins witnessed an increase, out of which 92, including all the top 10 coins, were green. Bitcoin (BTC) and Ethereum (ETH) rose to $115,350 and $4,548 respectively, while Solana emerged as the best performer with a hike of 7.1%. There were also significant inflows recorded by US BTC and ETH ETFs.
Who does this affect?
This news impacts cryptocurrency investors and traders, especially those who hold the top 10 coins. Apart from that, the institutions who have invested in Bitcoin and Ethereum ETFs will be affected. Moreover, companies like Galaxy Digital, which reportedly acquired 2.31 million SOL, are also impacted positively by the increasing prices of these cryptocurrencies.
Why does this matter?
The rise in the cryptocurrency market indicates a potential return of bullish sentiment. This could lead to more investments and possibly higher returns for those already invested, thereby stimulating the market. Furthermore, the significant inflows in the US BTC and ETH exchange-traded funds show a continued institutional interest in cryptocurrencies, which is generally seen as a positive signal for the overall health of the crypto market.