After being in the red for four straight days since Saturday, the cryptocurrency markets turned green on Wednesday. Ethereum has gained steam, increasing by 7% in the past 24 hours, while Bitcoin has increased by nearly 6%. After the FTX-caused crash that erased nearly $250 billion in market cap, the markets appeared to heave a collective sigh of relief for a while.
However, if the markets are unable to maintain steady growth this year, the recent price spike may be temporary. Here, we’ll break down the fundamental drivers behind today’s Bitcoin and Ethereum price increases.
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Why Are Bitcoin & Ethereum Up Today?
On Tuesday, a new wave of buyers entered the market, sending the price of cryptocurrencies like Bitcoin and Ethereum soaring. After a 24-hour increase of 6.18%, the total market cap of all cryptocurrencies now stands at $862 billion.
Also, this week’s stock market gains have helped fuel a surge in cryptocurrency prices. Dow Jones spiked nearly 400 points on Tuesday as Wall Street investors bet on easing inflation rates. Investors are feeling more upbeat than usual thanks to reports that the Federal Reserve is planning to slow the pace of interest rate hikes.
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The S&P 500 index gained 1.36 percent, finishing at 4,003 for the first time since September 2022 (when it was at 4,002). With a gain of 1.36%, the Nasdaq Composite reached 11,174.
The increase coincided with the publication of generally positive annual earnings reports by major corporations. Shares in both Abercrombie & Fitch and American Eagle Outfitters rose sharply after the release of their quarterly earnings, with the former rising by 21.4% and the latter by nearly 18.2%.
Bitcoin and Ethereum gained ground as a result of the general uptick in the stock market.
Amid the ongoing drama surrounding FTX, Alameda, and Genesis, however, it’s possible that Bitcoin and Ethereum’s positive momentum will be short-lived.
Genesis has recently announced they need $1 billion in emergency funds this week or they will be forced to declare bankruptcy. Since Binance has already decided not to fund the cryptocurrency lending firm Genesis, it seems unlikely that the company will receive new funding.
Also Read: Institutional Investors Buying the Crypto dip: Coinbase Report
Bitcoin’s price was $16,535 at time of writing, reflecting a 5.6% increase over the previous day’s trading. Ethereum, on the other hand, has risen 6.9 percent today to a price of $1,162.
Source: Watcher.guru
Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.
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