The cryptocurrency market is trading today as Bitcoin (BTC), Ethereum (ETH), Cardano (XRP), Solana (SOL), and numerous altcoins rallied as investor positive sentiment toward cryptocurrencies continues to rise. It is on the rise. The positive growth was driven by Ether, which hit a six-month high following news that BlackRock’s Nasdaq spot Ethereum ETF was confirmed.
Let’s take a look at three key factors influencing today’s cryptocurrency market rise.
Institutional investors and fund managers are looking to invest in Ethereum.
On November 9, BlackRock’s plan for a spot Ethereum exchange-traded fund (ETF) was confirmed through a Form 19b-4 filing with the U.S. Securities and Exchange Commission (SEC). After confirmation, the price of Ethereum surged 12.2%, surpassing Bitcoin for the first time in months.
BlackRock’s possible entry into the Ether market indicates that institutional investors are becoming more interested in the cryptocurrency market. Institutional participation in the cryptocurrency market could result in significant capital inflow into the Ethereum market, pushing the price higher.
In addition to BlackRock’s potential spot Ether ETF, Bloomberg analyst James Seyffart said at least five other companies would seek approval from the SEC.
There are 5 other live spot Eth filings that I am aware of:@vaneck_us @ARKInvest/ @21 weeks @hashdex @InvescoUS/ @galaxyhq
andddd @GrayscaleYour conversion request has been received. $ETH.In no particular order.
— James Seyff (@JSeyff) November 9, 2023
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Market-wide sentiment is improving as institutional interest grows. Activity in the options markets suggests that Ether’s outperformance is not just a one-time event and could continue in the near term. The Chicago Mercantile Exchange (CME), utilized by major institutions, outperformed Binance Futures on November 9 after $1 billion in open interest disappeared from the market.
It is now officially institutionalized.
This notable major regime change comes on a day when Blackrock is close to confirming its ETF approval.
This month, both options and culprits were put into body bags by market makers.
The King is Dead Long Live the King https://t.co/vuYtIOPEmB
— JJ Janitor (@JLabsJanitor) November 9, 2023
Institutional investors are not the only group feeling bullish about the cryptocurrency market. Sentiment also improved in retail, up 23 points compared to last month, as measured by the Bitcoin Fear & Greed Index.
Fixed total value and volume surge
Positive sentiment in the cryptocurrency market is causing ripples throughout the ecosystem. Bitcoin and cryptocurrency market trading volume reached $44.1 billion on November 9. This is the highest overall volume increase since March 14th.
Trading volume isn’t the only indicator hitting multi-month highs. On November 9, total value locked (TVL) reached its highest level since June 3. The increase in TVL was $46.5 billion, an increase of 3.7% over 24 hours.
There is optimism surrounding the increase in trading volumes, which could help break a two-year deficit in November in terms of returns.
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While there remain risks to Bitcoin and altcoins that could impact their prices, increased institutional interest and increased trading volume are strong signs that the bear market may be over.
Overall, the cryptocurrency market is likely to continue to experience price volatility. While positive institutional attention may provide a short-term boost to cryptocurrency prices, the market’s reaction to new enforcement actions or an economic downturn will be the true deciding factor in determining the direction the market takes.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.