Bitcoin has become the most popular digital asset in three years, showing enormous demand for it at a time when other tokens are struggling.
At the end of last week, the market for digital assets was worth $2.4 trillion, and BTC controlled almost 55% of that market. This much power has existed since April 2021. On Saturday, it gained a lot of ground, reaching 57% and just barely going over $67,000.Next on the list are Solana (SOL), Tether’s USDT stablecoin, Ethereum (ETH), and Binance Coin (BNB).
A significant factor for Bitcoin’s success is that successful US spot Bitcoin Exchange Traded Funds (ETFs) were recently approved by prominent businesses like BlackRock and Fidelity Investments. People have put about $56 billion into these ETFs, making their start one of the most successful in the history of funds.
Bitcoin ETFs Drive Surge
Bitcoin hit its all-time high (ATH) of $73,798 in mid-March due to many funds moving into these ETFs. Even though it dropped another 6%, BTC did better than other digital assets like Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK), which declined nearly 30% in the last month. This happened at the same time that people became less optimistic about the US’s plans to loosen monetary policy.
The holdings of institutional players have had an enormous effect on BTC success compared to the rest of the market in the US Bitcoin ETF. Benjamin Celermajer, Director of Digital Asset Investment at Magnet Capital, states that strong institutional demand was a significant factor.
Several signs suggested asset managers were preparing to launch Hong Kong-listed ETFs for BTC and Ethereum on Monday. This made the prices of these currencies rise sharply. The value of Bitcoin and Ethereum rose by 6.2% and 4.3%, respectively, to $66,475.
The prices of tokens like Polygon (MATIC), Cardano (ADA), Dogecoin (DOGE), and Solana all went up. With an increase of over 8%, Solana was the most profitable token in the top 5 cryptocurrencies.
The Bloomberg Galaxy Crypto Index, which tracks the success of major digital assets traded in US dollars, has increased more than threefold since the start of the year. People were extremely skeptical about the market in 2022, so this is an enormous shift.
More and more people are enthusiastic about the Bitcoin Halving event that will happen around April 20th and split the new supply of Bitcoins in half. After earlier halving events, prices have gone up, but there are questions after Bitcoin’s most recent all-time high.
Bitcoin has stayed above $66,000 and is now in this price band. Drops that last longer happen during active trade times. For instance, losses have been more than 21% and 24% in the last fourteen and thirty days, respectively.
