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Crypto Market Surge: Bitcoin and Ethereum Lead the Charge

Crypto Market Surge: Bitcoin and Ethereum Lead the Charge

Explore the dynamics behind the recent crypto market surge, with Bitcoin reaching $52,000 and Ethereum hitting new highs.
10 minutes
05.04.2024
Editor Satoshi`s Secrets
Crypto Market Surge: Bitcoin and Ethereum Lead the Charge

In Brief

The recent surge in Bitcoin and Ethereum prices has influenced altcoin values and ETF investments, suggesting a potential altcoin season spurred by AI-related cryptocurrency advancements.

Experts have delineated the cryptocurrencies that might surge following the price jumps of Bitcoin and Ethereum and discussed whether a widespread increase across the crypto market is imminent.

The price increase of Bitcoin to $52,000 on February 15 contributed to the appreciation of several altcoins, some of which outperformed the market leader in growth dynamics over the last week.

Interest in Bitcoin is maintained by the activity in spot exchange-traded funds (ETFs) launched in January, whose issuers purchase Bitcoins daily to back their shares. Managed by these funds is about $37 billion, with a single ETF from BlackRock holding over 100,000 Bitcoins, according to official site data. The daily asset inflow into the company’s ETF for one trading day on February 20 exceeded $150 million.

Typically, a Bitcoin rally is followed by the rise of less capitalized coins, but this time, established crypto assets also joined in.

Ethereum (ETH), the second-largest cryptocurrency, also hit a new high, reaching the $3,000 mark for the first time since spring 2022. Ethereum’s market capitalization surpassed $350 billion, according to Coinmarketcap.

The anticipation of regulatory approval for Ethereum spot ETFs in the USA, with applications submitted by BlackRock, Grayscale, Ark Invest, and Fidelity Investments, is fueling the price increase. The deadline for the initial decisions is set for May of this year.

Investor focus is currently on Ethereum, as evidenced by the sharp increase in ETH trading volume. Previously, in the first week of February, the daily trading volume for “Ether” rarely exceeded $10 billion, but it has now nearly doubled and surpassed $19 billion, commented Anton Toropcev, Regional Director at CommEX.

The expert attributes Ethereum’s growth to investors’ anticipation of growth from the March Dencun update in the main network, hopes for the launch of Ethereum ETFs, and the speculation that Bitcoin’s growth momentum may have slowed for the coming weeks. Given Bitcoin’s limited trading range, traders are turning their attention to altcoins that have not yet reached local maximums and have not realized the full growth potential of the cryptocurrency market, suggests Anton Toropcev.

However, he believes that the rise of altcoins is related to the deceleration of Bitcoin’s growth pace and that it’s premature to declare the onset of a full-fledged altcoin season.

Altseason, a slang term among cryptocurrency traders, signifies a period of active, simultaneous growth of alternative cryptocurrencies. It’s believed that altseason undergoes four phases: growth of Bitcoin, growth of Ethereum, growth of large-cap cryptocurrencies, and mass growth of the rest of the crypto market, including low-liquidity assets without fundamental value, accompanied by widespread speculation from retail traders.

If 75% or more of cryptocurrencies exhibit a 90-day return in percentage higher than Bitcoin, this is also considered an altseason. This principle calculates the so-called altseason index.

“For an altcoin season to occur, Bitcoin’s share remains too high – above 50%. Meanwhile, Ethereum’s share has only increased by 1 percentage point since December 2023, to 17.2%. The share of other altcoins, excluding ETH, USDT, BNB, SOL, currently stands at 20% – against, for example, 36% in December 2018,” said Anton Toropcev.

An altcoin season typically occurs a year after a Bitcoin halving. Instead of short-term trading, the expert recommends developing a strategy for long-term investments, creating a portfolio that includes infrastructure tokens of popular decentralized exchanges (DEX), blockchain platform coins for decentralized applications (DApp), and tokens related to artificial intelligence projects.

Worldcoin (WLD), the leading cryptocurrency in the artificial intelligence (AI) token category, also garnered attention this week. Following the news about the launch of the Sora neural network by OpenAI, the token surged in price by 150% and hit a new all-time high. Worldcoin is developed by Tools for Humanity, co-founded by Sam Altman of OpenAI. The token’s market capitalization rose to $800 million.

The news flow around the launch of the Sora graphic neural network impacted the leading tokens of AI-related projects. Along with WLD, the price and capitalization of a list of altcoins associated with the development and implementation of artificial intelligence saw growth. The trading volume of AI category tokens increased by more than 83% and amounted to about $9 billion over the week.

One of the growth leaders in the AI category was the token of the SingularityNET project (AGIX), “the first decentralized marketplace for artificial intelligence,” operating on the Cardano blockchain. Its capitalization exceeded $650 million, and the price increased by more than 30% over the week, reaching a new all-time high of $0.59.

Analyst at Cryptorg Andrey Podolyan recommended paying attention to several altcoins with good potential for further growth, including the Ethereum Name Service (ENS) platform token for blockchain domain name registration and JASMY – a coin of the Japanese Internet of Things (IoT) platform, created by Jasmy Corporation.

The daily ENS/USDT chart indicates a “cup with handle” formation, hinting at further growth of this crypto asset. The current token price is $22.34 with a market capitalization of $680 million.

The recent 100% increase in JASMY is linked by the analyst to the Japanese regulator’s permission for market professionals to invest in crypto. If the resistance level around 0.012 is successfully breached, the price could rise by another 100–200%, according to Andrey Podolyan.

Amid capital inflows into Bitcoin ETFs and the rise in the price of the first cryptocurrency, the “Fear and Greed” index in the crypto market rose to 76 out of 100 points, indicating a shift in market sentiment to “extreme greed.” This level is considered extremely high, last observed in early November 2021 – before Bitcoin reached its all-time high of $69,000.

Experts have delineated the cryptocurrencies that might surge following the price jumps of Bitcoin and Ethereum and discussed whether a widespread increase across the crypto market is imminent.

The price increase of Bitcoin to $52,000 on February 15 contributed to the appreciation of several altcoins, some of which outperformed the market leader in growth dynamics over the last week.

Interest in Bitcoin is maintained by the activity in spot exchange-traded funds (ETFs) launched in January, whose issuers purchase Bitcoins daily to back their shares. Managed by these funds is about $37 billion, with a single ETF from BlackRock holding over 100,000 Bitcoins, according to official site data. The daily asset inflow into the company’s ETF for one trading day on February 20 exceeded $150 million.

Typically, a Bitcoin rally is followed by the rise of less capitalized coins, but this time, established crypto assets also joined in.

Ethereum (ETH), the second-largest cryptocurrency, also hit a new high, reaching the $3,000 mark for the first time since spring 2022. Ethereum’s market capitalization surpassed $350 billion, according to Coinmarketcap.

The anticipation of regulatory approval for Ethereum spot ETFs in the USA, with applications submitted by BlackRock, Grayscale, Ark Invest, and Fidelity Investments, is fueling the price increase. The deadline for the initial decisions is set for May of this year.

Investor focus is currently on Ethereum, as evidenced by the sharp increase in ETH trading volume. Previously, in the first week of February, the daily trading volume for “Ether” rarely exceeded $10 billion, but it has now nearly doubled and surpassed $19 billion, commented Anton Toropcev, Regional Director at CommEX.

The expert attributes Ethereum’s growth to investors’ anticipation of growth from the March Dencun update in the main network, hopes for the launch of Ethereum ETFs, and the speculation that Bitcoin’s growth momentum may have slowed for the coming weeks. Given Bitcoin’s limited trading range, traders are turning their attention to altcoins that have not yet reached local maximums and have not realized the full growth potential of the cryptocurrency market, suggests Anton Toropcev.

However, he believes that the rise of altcoins is related to the deceleration of Bitcoin’s growth pace and that it’s premature to declare the onset of a full-fledged altcoin season.

Altseason, a slang term among cryptocurrency traders, signifies a period of active, simultaneous growth of alternative cryptocurrencies. It’s believed that altseason undergoes four phases: growth of Bitcoin, growth of Ethereum, growth of large-cap cryptocurrencies, and mass growth of the rest of the crypto market, including low-liquidity assets without fundamental value, accompanied by widespread speculation from retail traders.

If 75% or more of cryptocurrencies exhibit a 90-day return in percentage higher than Bitcoin, this is also considered an altseason. This principle calculates the so-called altseason index.

“For an altcoin season to occur, Bitcoin’s share remains too high – above 50%. Meanwhile, Ethereum’s share has only increased by 1 percentage point since December 2023, to 17.2%. The share of other altcoins, excluding ETH, USDT, BNB, SOL, currently stands at 20% – against, for example, 36% in December 2018,” said Anton Toropcev.

An altcoin season typically occurs a year after a Bitcoin halving. Instead of short-term trading, the expert recommends developing a strategy for long-term investments, creating a portfolio that includes infrastructure tokens of popular decentralized exchanges (DEX), blockchain platform coins for decentralized applications (DApp), and tokens related to artificial intelligence projects.

Worldcoin (WLD), the leading cryptocurrency in the artificial intelligence (AI) token category, also garnered attention this week. Following the news about the launch of the Sora neural network by OpenAI, the token surged in price by 150% and hit a new all-time high. Worldcoin is developed by Tools for Humanity, co-founded by Sam Altman of OpenAI. The token’s market capitalization rose to $800 million.

The news flow around the launch of the Sora graphic neural network impacted the leading tokens of AI-related projects. Along with WLD, the price and capitalization of a list of altcoins associated with the development and implementation of artificial intelligence saw growth. The trading volume of AI category tokens increased by more than 83% and amounted to about $9 billion over the week.

One of the growth leaders in the AI category was the token of the SingularityNET project (AGIX), “the first decentralized marketplace for artificial intelligence,” operating on the Cardano blockchain. Its capitalization exceeded $650 million, and the price increased by more than 30% over the week, reaching a new all-time high of $0.59.

Analyst at Cryptorg Andrey Podolyan recommended paying attention to several altcoins with good potential for further growth, including the Ethereum Name Service (ENS) platform token for blockchain domain name registration and JASMY – a coin of the Japanese Internet of Things (IoT) platform, created by Jasmy Corporation.

The daily ENS/USDT chart indicates a “cup with handle” formation, hinting at further growth of this crypto asset. The current token price is $22.34 with a market capitalization of $680 million.

The recent 100% increase in JASMY is linked by the analyst to the Japanese regulator’s permission for market professionals to invest in crypto. If the resistance level around 0.012 is successfully breached, the price could rise by another 100–200%, according to Andrey Podolyan.

Amid capital inflows into Bitcoin ETFs and the rise in the price of the first cryptocurrency, the “Fear and Greed” index in the crypto market rose to 76 out of 100 points, indicating a shift in market sentiment to “extreme greed.” This level is considered extremely high, last observed in early November 2021 – before Bitcoin reached its all-time high of $69,000.

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