- Rapid increases in Bitcoin (BTC) prices appeared to have stopped on Wednesday morning; Traders likely profited from the one-week rally.
- The growth in SOL tokens comes as traders downplay fears of an impending selloff from the FTX bankruptcy estate.
- “We see that potentially the so-called ‘crypto winter’ may be unraveling permanently,” said Diogo Mónica, co-founder of Anchorage Digital.
The recent price rally in Bitcoin has increased demand for BTC, as well as strengthening thoughts that the crypto winter may be over for good.
Crypto Winter May Be Coming to a Complete End With Latest Rally
The rapid price surges in Bitcoin (BTC) seemed to have paused on Wednesday morning, with traders likely taking profits from a week-long uptrend. Hopes for approval of a spot Bitcoin exchange-traded fund (ETF) in the U.S. had driven Bitcoin prices up by as much as 25%.
Major tokens exhibited mixed movements, with Cardano’s ADA down 2% while Solana’s SOL tokens added 3%, extending their nearly 30% weekly rally. The growth in SOL tokens came as traders downplayed fears of an impending sell-off wave from the FTX bankruptcy trustee.
Meanwhile, some traders suggested that institutional adoption could be an indicator that the “crypto winter” is coming to an end—a phrase used to describe a bear market characterized by low prices and minimal venture capital investments.
Diogo Mónica, co-founder of Anchorage Digital, said, “We are seeing that what could potentially be referred to as ‘crypto winter’ may be permanently resolved. The digital asset market will always have bulls and bears, but institutional adoption is bringing us closer to spring.” He referred to numerous spot ETF applications. Mónica continued:
“The recent price movement and the steps taken for the approval of a spot Bitcoin ETF indicate that Bitcoin’s long-term outlook is more promising than it has been recently, and institutions are just getting started.”
Increasing demand for Bitcoin
On the other hand, crypto trading firm QCP Capital stated in a publication that the current anticipation of a spot Bitcoin ETF was driving significant demand. QCP said, “Movements like Blackrock’s DTCC list and IBTC have given hope that SEC approval is imminent. However, we do not believe this situation signifies an imminent SEC decision.”
The firm continued, “Instead, we expect the SEC to be reluctant to play a determinative role by adhering to its own precedent set in the BTC/ETH futures ETF approval process, and we expect approval for multiple issuers simultaneously.”
