- Bitcoin and Ethereum witness noticeable gains as October nears.
- VanEck’s announcement of an Ethereum futures ETF boosts market sentiment.
- Declining dollar value and massive short liquidations amplify bullish sentiments.
The crypto market shows strong recovery with key players like Bitcoin and Ethereum leading the surge, primarily influenced by Ethereum futures ETF news and a weakening dollar.
Bitcoin and Ethereum Pave the Way
Both leading cryptocurrencies have shown promising growth as October begins. Bitcoin, with a 2.4% increase, has crossed the $27,000 threshold, while Ethereum, boasting a 3.3% gain, has comfortably settled above the $1,650 mark. A collective observation by Bitfinex analysts points towards multiple influencing factors such as the upcoming Ethereum futures ETF, a subsequent 2% spike in the S&P 500 index, and a staggering $80 million short liquidations recorded within the previous day.
Ethereum Futures ETF Ignites Optimism
Thursday brought promising news for the crypto community as VanEck, a major investment management firm, publicized the imminent launch of an Ethereum futures ETF. This announcement not only stirred optimism among Ethereum investors but also fortified bullish sentiments across the crypto spectrum. Alongside, the U.S. stock market, transitioning to a positive trajectory, further “gives hope for a market bottom,” especially following its decline since mid-September, as indicated by Bitfinex experts.
The Dollar’s Decline: A Silver Lining for Crypto?
The dollar’s weakening stature has seemingly played into the hands of the crypto market. The dollar index (DXY) witnessed a drop against other prominent global reserve currencies for the second consecutive day, diminishing 1.13% from its peak value of 106.8 points. This inverse correlation between the dollar and crypto markets dates back to the period when the U.S. central bank commenced its interest rate hikes, ultimately setting a discernible trend.
Futures Market Liquidations: A Boosting Factor
A significant boost to the crypto surge appears to stem from the futures market. With a hefty liquidation of short orders, amounting to about $80 million as reported by CoinGlass, the purchasing momentum increased. Notably, Bitcoin and Ethereum were at the forefront of these liquidations, adding impetus to their price ascension, as elucidated by the Bitfinex analyst.
Crypto Market’s Broad Positive Streak
As the crypto behemoths like Bitcoin and Ethereum marched forward, the rest of the crypto entities followed suit. The global crypto market cap saw a commendable 2.2% augmentation since the previous day, translating to an addition of close to $25 billion, as per CoinGecko’s assessment. Dominating the high performers’ list were Sui Network (SUI) and PepeCoin (PEPE) with 12.6% and 10.8% gains respectively, while ApeCoin (APE), Thorchain (RUNE), and Arbitrum (ARB) weren’t far behind, registering overnight growth rates ranging from 6% to 8%.
Conclusion
The crypto market is undeniably on a rejuvenating spree. With influencers like Ethereum’s upcoming futures ETF, a dwindling dollar value, and considerable futures market liquidations, the upward momentum seems well-fueled. As October unfolds, the crypto world will be keenly observing these trends, ensuring they are well-prepared for any potential market shifts.
