The cryptocurrency market has found new momentum by a recent rally that propelled Bitcoin’s value towards the $35,000 mark.
The surge in price has not only caught the attention of investors but has also sparked a renewed interest in crypto trading, leading to a significant increase in daily exchange volumes.
According to data from The Block, the seven-day moving average for spot exchange volumes across reputable platforms breached an impressive $24 billion on October 26, a level not seen since the end of March.
The sudden resurgence in market activity can be attributed to several factors.
One key driver is the buzz surrounding the potential launch of a spot Bitcoin exchange-traded fund (ETF).
Advocates believe that the introduction of a spot Bitcoin ETF would pave the way for an influx of capital into the market, creating new avenues for investment and further propelling the price of Bitcoin.
As traders await the launch of an ETF, the resulting speculation has injected a level of volatility into the market not seen since April.
Some Believe Bitcoin Bull Market Has Started
As reported, crypto financial services platform Matrixport believes Bitcoin’s fifth bull run has already started and could see the flagship cryptocurrency reach an impressive $125,000 by December 2024.
“This bull market officially commenced on June 22, 2023, when Bitcoin reached a new one-year high for the first time in a year. Historically, when this signal was triggered, Bitcoin has delivered, on average, returns of +310%,” the company said in a report last week.
In another confirmation of the Bitcoin bull market, the leading cryptocurrency’s market dominance has reached 54%, its highest level in more than two and a half years.
The steady increase in Bitcoin dominance, starting from around 38% at the beginning of the year, comes amid its year-long rally, with the flagship cryptocurrency surging by 81% since the start of 2023.
Meanwhile, Matrixport has predicted a major Bitcoin rally if a spot ETF hits the market.
Comparing this to the precious metals ETFs, which have a market cap of around $120 billion, assuming that 10-20% of precious metal ETF investors consider diversifying into a Bitcoin ETF as a hedge against monetary debasement and inflation, Matrixport said we could witness an inflow of $12 to $24 billion into the Bitcoin ETF.
“If Tether’s market cap increases by $24 billion, acting as a proxy for potential ETF inflows, Bitcoin’s price would rise to $42,000, representing a conservative estimate.”
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