Bitcoin remains the undisputed king in the crypto realm, showcasing its influence in the entire digital assets market. Purely based on its performance amidst global economic and legal challenges, Bitcoin has captivated the eyes of both institutional investors and retail investors.
The leading digital currency is set to experience a bull rally in the coming months as it closely reaches the $30,000 mark. The sudden spike has been caused by developing events around the SEC approving spot Bitcoin ETF, which’s been long anticipated by the crypto community.
On the other hand, XRP has experienced a 6% rise after its legal victory against the US Securities and Exchange Commission (SEC). Judging from the events around Bitcoin and XRP, the crypto winter might come to an end sooner than expected.
Bitcoin soaring rally- is the bull market here?
Bitcoin’s soaring rally has been a spectacular journey with surges up and down the crypto market. The fluctuations have been caused by events around the digital asset, including lawsuits, rate fears, and regulatory challenges.
However, bitcoin has recently experienced a bearish trend since last year, as it hit its lowest support level of $16,000 in late November. At the time of writing, CoinMarketCap and Binance have BTC trading at $30,020 and $30,023 respectively against the dollar.
CoinGecko reports that the global crypto market cap today stands at $1.18 Trillion, a 5.03% change in the last 24 hours and 24.06% change one year ago. As of today, BTC’s market cap stands at $586 Billion, representing a BTC dominance of 49.79%. Meanwhile, Stablecoins’ market cap is at $124 Billion and has a 10.57% share of the total crypto market cap.
The recent rapid spike to levels above $29,800 has been a result of the news on Bitcoin ETFs that have surged in price. On Thursday, BTC was tagged at $28,600 after the explosion of three major crypto players as defrauders. The news was reported by the New York Attorney General, who accused Digital Currency Group and its subsidiary, Genesis Global Capital, of allegedly defrauding $1 billion from over 230,000 investors together with the Gemini crypto exchange.
Bitcoin’s price experienced a surge despite this news, alongside the increased interest rates. The 10-year US Treasury yield has increased another 6 points, moving close to the top 5%, currently at 4.97%. This would be the highest it’s been since before the global financial crisis.
Regardless of the challenging news that might cause a lack of confidence among investors, Bitcoin records a 1% increase to $28,600. This was after a brief run that almost touched the $29,000 mark, days after the sudden spike caused by the fake reports around the SEC’s approval of spot Bitcoin Exchange-Traded Funds (ETFs).
The crypto market expecting a bull run
Ripple’s XRP also experienced a rise of 6% on Thursday evening as the US Securities and Exchange Commission (SEC) dropped the charges against Ripple Labs Chief Executive Brad Garlinghouse and chairman Chris Larsen.
The legal battle was to determine whether XRP should be treated as a security. This was a huge win for Ripple’s XRP for the 3-year-long case from 2020. The dropped charges brought a sense of relief to the XRP investors, and this led to the rising price rally.
According to Jerome Powell, the US Federal Reserve Chairman, he commented that inflation is still at its peak. However, he commented saying that a long-run increase will mean less need for increased interest rates.
Despite the lawsuit against DCG and Gemini, this news hasn’t yet affected the Grayscale Bitcoin Trust (GBTC) share price. According to data readings on TradingView, this share price was up by 2%. This was a new development that wasn’t expected since Asset Manager Grayscale is another Digital Currency Group subsidiary.
News on Bitcoin ETFs has been met with positive remarks, and major institutions intend to invest in these exchange-traded funds. Grayscale Bitcoin Trust also intends to convert its $15 billion Bitcoin investment to a Bitcoin Exchange-Traded Fund (ETF).
This was after its victory in August against the SEC for denying its application for the ETF approval. This meant good news for the firm once the Securities and Exchange Commission failed to appeal the decision last week after the 45-day grace period.