It’s one of the strongest crypto weeks in 1.5 years – and this despite the fact that until recently there was extreme fear. What has happened now? And is the bull market about to start again?
Bitcoin and the dominance in the crypto market
Bitcoin has a strong position in the crypto market, with a market capitalization that accounts for more than half of the entire market. Ethereum is fighting for a 20% dominance, but Bitcoin remains strong.
The question is, where is this momentum coming from and will we continue to see this Bitcoin strength?
The current pump
A key point contributing to Bitcoin’s current strength is the topic around ETFs, particularly spot ETFs. Big names like Blackrock, Valkyrie, and WisdomTree are in the mix, and the hope is that these bitcoin ETFs will bring positive momentum.
Stablecoins and regulation
Another big topic is that of stablecoins. As expected, the US government is trying to close the last regulatory arbitrage opportunity in the crypto space. Stablecoins are now considered money and will likely be regulated as such. This could lead to many platforms being unable to list Stablecoins, reducing liquidity.
The creation of EDX
Some big names have come together to create a new exchange called EDX. Importantly, EDX only lists some cryptocurrencies that are very likely to be considered commodities in the US, such as Bitcoin, Ethereum, and Litecoin.
Conclusion
The future of Bitcoin and cryptocurrencies is still uncertain. There are many factors that can affect the market, from regulations to new developments like the creation of EDX.
It’s important to stay informed and prepare for potential changes. Whether you think Bitcoin will continue to dominate or you think other cryptocurrencies will gain prominence, it’s important to carefully plan and diversify your investments.
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Julian
CEO Bake
