Bitcoin’s price soared past $59,000, and Ethereum reached $3,300 early Wednesday, reflecting a bullish sentiment in the cryptocurrency market.
The surge has propelled the combined market capitalization of BTC and ETH to $1.5 trillion, representing 67% of the total digital asset value globally, which now stands at $2.3 trillion, marking a 3% increase in the past day.
The momentum behind Bitcoin’s rise can be attributed to the recent approval of nine spot Bitcoin exchange-traded funds (ETFs) in the United States, now holding over 300,000 BTC, valued at more than $17 billion.
These ETFs, along with other BTC-related exchange-traded products, have brought significant volume to the market, with a total of $3.8 billion worth of transactions and a market capitalization nearing $45 billion.
Traders are optimistic that the intake of Bitcoin by these ETFs, surpassing the daily new supply, will enhance the impact of the upcoming Bitcoin halving in April. The halving, a scheduled reduction in the block reward for miners, has historically initiated a bull run by highlighting Bitcoin’s scarcity. This year’s halving will decrease the block reward from 6.25 BTC to 3.125 BTC, further limiting the new supply of Bitcoin.
On the Ethereum front, the network is experiencing excitement over the Dencun upgrade, set to activate on the mainnet on March 13, 2024.
This upgrade introduces proto-danksharding, aimed at improving transaction speed and reducing costs, further solidifying Ethereum’s position as the leading blockchain for DeFi and decentralized applications. Reports also indicate increasing institutional interest in Ethereum, suggesting a broader acceptance of its utility and potential for growth.
