Increased Bitcoin ETF Adoption Propels BTC Dominance To Highest Level Since 2021

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The influence of Bitcoin over the cryptocurrency sector is currently at its peak after three years, indicating robust interest in investing in US Bitcoin Spot ETFs that primarily hold Bitcoin, making it a tough time for less established digital tokens.

Last week, Bitcoin held approximately 55% of the total $2.4 trillion value in the digital asset market – a figure last observed in April 2021. On Saturday specifically, Bitcoin’s dominance surged to 57%, reaching a momentary peak near $67,000.

Among the tokens with significant market shares, you will find Ethereum (ETH), Tether’s stablecoin USDT, Binance Coin (BNB) from Binance exchange, and Solana (SOL).

BTC’s Rise Fueled By Successful US Bitcoin ETF Launches

Based on Bloomberg’s report, the successful launch of US Bitcoin spot ETFs by major firms like BlackRock and Fidelity has contributed significantly to Bitcoin’s price increase.

Approximately $56 billion has been amassed in these ETFs since their launch, making it one of the most prosperous fund debuts in history.

Increased Bitcoin ETF Adoption Propels BTC Dominance To Highest Level Since 2021

The large amounts of money flowing into these Bitcoin ETFs helped push the cryptocurrency’s price to a new all-time high of $73,798 in mid-March. However, this price level has proven to be a significant barrier for Bitcoin, as it has struggled to maintain prices above $70,000 since reaching this peak.

In contrast to Bitcoin (BTC) dropping approximately 6% within this timeframe, smaller digital currencies including Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) have experienced larger decreases of almost 30% over the past month.

This occurrence of a decrease in value happened at the same time that there were lower hopes for easier American monetary policies, which frequently led to profitable speculation.

Hong Kong-Listed ETFs Boosts Bitcoin And Ethereum

The influence of institutional investors on the US Bitcoin Exchange-Traded Fund (ETF) significantly impacted Bitcoin’s price in comparison to the broader market. According to Benjamin Celermajer, who leads digital-asset investments at Magnet Capital, robust institutional interest plays a crucial role in this trend.

On Monday, Bitcoin and Ethereum, the second largest cryptocurrencies, experienced significant price increases due to hints that investment firms plan to introduce ETFs (Exchange Traded Funds) for both digital coins on the Hong Kong Stock Exchange. The price of Bitcoin climbed by 4.3% to reach $66,575, and Ethereum surged by 6.2%, reaching $3,260.

The crypto rallies boosted the market significantly, causing a surge of more than 8% for noteworthy tokens like Polygon (MATIC), Cardano (ADA), Dogecoin (DOGE), and Solana on Monday, securing Solana’s spot as one of the top five cryptocurrencies.

It’s worth noting that the Bloomberg Galaxy Crypto Index, which tracks the largest cryptocurrencies traded against the US dollar, has seen a remarkable surge, nearly tripling in value since the start of last year. This represents a strong comeback from the downturn in the cryptocurrency market during 2022.

To wrap up, the Bitcoin Halving is a highly anticipated event among investors and traders. This occurs when the production of new Bitcoins gets reduced by half, approximately around April 20th.

In the past, Bitcoin’s price has been boosted by previous halvings. However, some people are now questioning if this trend will continue, considering Bitcoin’s recent record-breaking high.

Increased Bitcoin ETF Adoption Propels BTC Dominance To Highest Level Since 2021

Bitcoin has stayed above the $66,000 mark and has been holding steady within this price range. Nevertheless, it’s worth mentioning that there have been substantial losses for those who have held onto their investments over a longer period.

In the last two weeks and the preceding thirty days, the value of the cryptocurrency dropped by approximately 21% and 24% respectively.

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2024-04-15 21:40