Neon signs advertising Bitcoin and Ethereum exchanges were visible in Warsaw, Poland, on May 19, 2024.
In recent news, the cryptocurrency market has continued its upward trend, with Bitcoin remaining steady above the $100,000 mark—something it hasn’t seen since 2021.
As reported by Coin Metrics, Bitcoin saw a 2% increase, reaching $103,249.99 on Friday, after previously hitting $104,324.65, its highest point since January 31. This marks Bitcoin’s fourth consecutive week of gains, rising over 6%, the first four-week winning streak since November.
Gadi Chait, an investment director at Bitcoin Native Zapo Bank, noted, “The move above $100,000 isn’t just excitement but suggests a fundamental shift driven by cash flow. Investors, including ‘whales’, have been accumulating assets on-chain. ETF demand keeps breaking records, and people are looking for stable investments amid a settling macroeconomic landscape.” He also mentioned the impact of a US-UK trade deal and easing tensions with China, contributing to a generally lower-risk environment.
This positive sentiment is spilling over into altcoins—cryptocurrencies other than Bitcoin—but many have struggled to keep pace with Bitcoin’s profits this year. For instance, Ether, which had lagged, surged 10% recently, with gains of 29% over two days. Solana also increased by 6%, totaling a 16% rise in two days.
This week, Ethereum completed significant technological upgrades, reducing transaction fees and enhancing staking and smart wallet functionalities.
Looking ahead, Ether experienced a rise of 25% weekly, aiming for its best performance since May 2021, while Solana’s token added 14.3% this week.
However, despite these gains, Ether and other major altcoins, except for XRP, are still trailing behind Bitcoin. Currently, Bitcoin is up 10% over the year, whereas Ether and Solana have seen declines of 31% and 12%, respectively.
The introduction of the Spot Bitcoin ETF in 2024 has altered Bitcoin’s market dynamics, with demand emerging from corporate bonds, retirement accounts, and macro funds. In contrast, altcoins still rely heavily on capital from the crypto-native sector, which, based on comments from Injective co-founder Eric Chen, hasn’t shown notable growth linked to broader tech trends.
Chen suggested Bitcoin might continue to dominate until more capital shifts into altcoins. “For us, the best strategy is to focus on BTC until market conditions improve,” he stated, emphasizing Bitcoin’s current supremacy compared to other cryptocurrencies.
—Reported by CNBC
