The ten most traded cryptocurrencies rise up to 5% led by Solana, Ripple and Cardano.
Cryptocurrencies step on the accelerator again and abandon the pessimism of the previous day after the Binance case. Bitcoin rises 1.85% in the last 24 hours and manages to exceed $37,200. The ten most traded cryptocurrencies rise up to 5% led by Solana (SOL), followed by Ripple (2.8%) and Cardano (2.7%). Meanwhile, Ethereum rises 1.45% and settles above $2,000.
Digital assets seem to have shaken off concerns resulting from the fine of US$4.3 billion imposed on Binance and the resignation of its CEO and founder, Changpeng Zhao, an episode that shocked the markets. According to experts, the sentiment around this sanction has turned around, as investors interpret this event as a bullish factor for cryptocurrencies as a whole and for bitcoin in particular.
And numerous analysts pointed out that the closure of the Binance case practically makes the approval of exchange traded funds (ETF) of BTC spot. “With this deal, expectations for a spot Bitcoin ETF could have increased to 100% as the industry will be forced to follow the rules that traditional finance companies must follow,” notes Orn from Matrixport.
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This thesis is also defended by Bernstein experts, who believe that, despite the fact that the largest crypto exchange in the world still has an unresolved lawsuit, this sanction could be “the straw that breaks the camel’s back” before the Securities and Exchange Commission (SEC) feels comfortable giving the green light to these investment products. “With Binance’s uncertainty out of the way, its activities will now be monitored by an independent supervisor. I hope the market agrees with me that this is indeed bullish,” added economist Alex Kruger.
Cryptocurrencies: what are the other price catalysts
On the other hand, Mohamad K. Ibrahim, CEO of XS.com, considered that there is other factors that are driving the price of digital assets. One, the belief that Inflation in the US could fall to 1.6% in 2024 when the Federal Reserve (Fed) start lowering interest rates. Another, the approval of temporary financing until the end of next year to avoid the closure of the federal government.
“In my opinion, a government shutdown could have caused a 10% drop in Bitcoin, but now a crisis may develop long-term bullish scenario, with bitcoin reaching $45,000 later this year. This is especially plausible as the expectations that the approval of a Bitcoin exchange-traded fund (ETF) could occur at any time in the coming weeks or months,” he said.
Technically, César Nuez, an analyst at Bolsamanía, points out that we are observing a consolidation of the strong increases experienced by bitcoin in the second half of October. “The lack of deep correction It is a sample of the current strength of the cryptocurrency. It is important that it does not abandon the support of US$33,655. The first level of resistance is found in the US$38,380, annual maximums drawn just a few days ago. If it managed to surpass these prices, it is very likely that we could see a extension of the increases to the level of US$43,000“he added.
Source: Ambito
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