After raising doubts about the possibility of a post-halving rally, bitcoin reignites the flame by reaching $63,000 on May 4. In its run, the parent cryptocurrency has, as usual, dragged down several other major altcoins such as ETH, SOL, CAD, etc. In the space of 24 hours, even though trading volumes fell by almost 18%, the momentum caused the overall cryptocurrency market capitalization to grow by 5.11%. Obviously, some would like to understand what this reversal of trend is due to. Is it already time for the rise? Is this a decoy? Details.
Renewed Interest in Bitcoin ETFs Restores Confidence
JPMorgan had predicted a post-halving bitcoin at $42,000. You have to believe that the American bank's calculations were not very accurate, because what we are seeing at the moment seems to correspond to a general market recovery.
The signs are obvious. We saw bitcoin hit $63,000 in 24 hours and altcoins progress steadily since then. We also saw the overall market capitalization of cryptocurrencies reach $2.34 billion, a growth of 5.11% in 24 hours.
This market recovery is not trivial. Indeed, thanks to recent American data which gave back to investors, 370 million dollars flowed into Bitcoin ETFs. This renewed interest, after the drastic decline to $34.4 million on May 2, has considerably strengthened the market's confidence in cryptos. This confidence was further reinforced by the acquisition, in the space of three days, of 4,128 BTC by Hong Kong which recently adopted Bitcoin and Ethereum ETFs.
Crypto accumulation during dips
The recovery of the crypto market was also caused by a change in the investment strategy of institutional clients. Indeed, as Fidelity Digital Assets recently indicated, several pension funds and wealthy individuals are showing growing interest in cryptocurrencies.
Several experts have also noted that the accumulation of high-potential cryptocurrencies during periods of decline has also contributed to the general market recovery.
We can understand that the combination of these factors helped to breathe new life into the cryptocurrency market which was suffering from lethargy that had lasted too long. For many, now is the time to act. It is hoped that bitcoin will set a new record in the next six or nine months.
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