- Bitcoin’s price has surged by nearly 7% in the last 24 hours, but what’s behind this recent rise?
- Analysts suggest that Bitcoin, the world’s largest cryptocurrency, is increasingly aligning with traditional investor perspectives through US ETFs.
- Stéphane Ouellette, CEO of FRNT Financial, comments on the week’s events, highlighting the unprecedented participation of Wall Street in the Bitcoin market due to the recent development of Bitcoin ETFs.
Bitcoin’s price has seen a significant rise in the last 24 hours, with analysts attributing this to the alignment with traditional investor perspectives through US ETFs. This article explores the factors behind this surge and the implications for the crypto market.
Bitcoin’s Recent Surge
Bitcoin experienced a rise on Friday following a report showing a smaller-than-expected increase in US employment. This revived expectations of interest rate cuts, enhancing the appeal of speculative assets. This rally managed to offset most of the losses that occurred earlier in the week due to growing concerns about the Federal Reserve officials adopting a more hawkish stance and reduced demand for ETFs.
Wall Street’s Increased Participation in Bitcoin Market
Stéphane Ouellette, CEO of FRNT Financial, commented on the week’s events, stating, “What this week has taught us is that with Bitcoin at its all-time high and the recent development of Bitcoin ETFs, Wall Street’s participation in the Bitcoin market is opening up in a way we’ve never seen before. Previously, there was no clear correlation with other asset classes. However, this week, especially during the sell-offs before the FED on Tuesday night, it was very clear that Bitcoin was trading in the same direction as other risk assets.”
Impact on Other Cryptocurrencies
On Friday, Bitcoin rose by about 7% to $63,257, contributing to price increases in smaller cryptocurrencies like Ether, Solana, and even memecoins like Dogecoin. On May 1, Bitcoin had fallen to its lowest level in about two months at $56,527.
Conclusion
The recent surge in Bitcoin’s price, attributed to the alignment with traditional investor perspectives through US ETFs, has had a significant impact on the crypto market. With Wall Street’s increased participation in the Bitcoin market, the future outlook for Bitcoin and other cryptocurrencies appears promising. However, as with any investment, potential investors should proceed with caution and conduct thorough research.
