By
Bhushan Akolkar
April 26th, 2024
Trading around $45,502.11, up 15.9% in the past seven days, Bitcoin and the entire crypto market has nullified a falling trend after breaking out of the prior consolidation.
After experiencing a notable sell-off in the past few months, the crypto industry is back to mid-May levels. Billions of dollars have proliferated the market the past few weeks, thanks to collective fundamental factors. According to market analytics provided by CoinGecko, the crypto industry has surpassed the $1.9 trillion level and is headed to reclaim its ATH value achieved earlier this year.
Both institutional investors and retail traders have been accumulating digital assets for the past three months at a fast rate hoping to catch an anticipated second wave.
Furthermore, the digital assets leaving centralized exchanges have significantly increased indicating more holders. According to crypto intelligence platform OKLink, the proportion of Ethereum held on centralized exchanges (CEX) has dropped to 9.4% of the total circulating supply, which is the lowest recorded figure in the past three years.
The crypto industry is headed for mass adoption bolstered by increased regulations. According to most crypto analysts, the more regulations come into the industry, the higher the level of adoption in the coming years.
According to a popular crypto analyst PlanB, Bitcoin is perfectly falling into the stock-to-flow (S2F) model. According to the stock-to-flow (S2F) model, Bitcoin has rebounded and begun the second wave of the prior bull run.
Trading around $45,502.11, up 15.9% in the past seven days, Bitcoin and the entire crypto market has nullified a falling trend after breaking out of the prior consolidation.
Crypto Industry and Its Growth Prospects amid Rise in Its Value
The digital asset industry has received notable spotlight, especially from regulators. For instance, Germany earlier passed a law allowing institutional investors to put up to 20% of their capital in digital assets. Additionally, Bitcoin is now a legal tender in a sovereign country El Salvador.
Former anti-crypto investors are now looking into the market following recent developments. Among them, the Ethereum London Upgrade that has brought about ETH burn, hereby making it sound money.
Bitcoin received one of its major upgrades dubbed Taproot, which is set to make its infrastructure more secure. Currently, United States lawmakers are debating on how to regulate the digital asset industry.
There continues to be a major division between lawmakers, thus delaying the process. The US SEC is on the other hand pushing to regulate the industry despite lagging in approving a BTC ETF.
A Bitcoin Exchange Traded Fund is expected to help institutional investors onboard through a more regulated manner. However, market pundits forecast the earliest the US SEC could approve a Bitcoin ETF to be 2022.