Bitcoin soared above $59,000 early Wednesday morning, while Ethereum touched the $3,300 level amid bullish sentiment among crypto traders.
Currently, BTC and ETH together account for $1.5 trillion, or 67% of the world’s digital assets. In the past day, the global market capitalization increased by 3% to $ 2.3 trillion.
Bitcoin price is currently $59,266.94, up 5.4% from this point yesterday and 15% from a week ago, according to data from CoinGecko.
BTC, the world’s largest and oldest cryptocurrency, has benefited from strong tailwinds from nine new spot Bitcoin ETFs that began trading in January. As of early Wednesday morning, the ETF, along with other Bitcoin trading products, had total trading volume worth $3.8 billion, putting its market cap just shy of $45 billion. coin glass.
On Tuesday alone, the Spot Bitcoin ETF saw net inflows worth $359 million.
Expectations are rising among traders that the effect of April’s Bitcoin halving will be even stronger, as ETFs are taking in more Bitcoin than are newly released onto the network each day. .
The Bitcoin halving will reduce the rewards paid to Bitcoin miners for validating transactions. In the history of Bitcoin, this has already happened three times: in 2012, 2016, and 2020. The block reward was previously 50 BTC, but now he has reduced it to 6.25 BTC.After this year’s halving—current schedule Mid April—Block reward will be reduced to 3.125 BTC.
This is an anti-inflation mechanism to reduce the rate at which Bitcoin’s 21 billion supply is released into the network. Periodic reminders of shortages have tended to start a bull market every time a bull market occurs, but it remains to be seen how it will play out this time.
Meanwhile, Ethereum is gaining momentum due to expectations for the Dencun upgrade. Yesterday, this change became even more likely as the developer announced that this change will be pushed to Ethereum mainnet on his March 13, 2024 date.
This upgrade introduces Protodunk Sharding, making transactions on the network faster and more affordable.
There are also signs that financial institutions are starting to include more Ethereum in their portfolios, according to a new report from ByBit.
