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After casting doubt on the possibility of a post-halving rally, Bitcoin hit $63,000 on May 4th, reigniting the flames. In this race, the original cryptocurrency, as usual, outperformed several other major altcoins such as ETH, SOL, and CAD. Within 24 hours, the momentum increased the overall market capitalization of cryptocurrencies, even though trading volume fell by nearly 18%. Increased by 5.11%. Obviously, some would like to understand the causes of this reversal of trends. Is it already time for an increase? Is it a deception? Details are below.
Renewed interest in Bitcoin ETFs restores confidence
J.P. Morgan expected the price of Bitcoin to be $42,000 after the halving. It appears that the American banks' calculations were not very accurate, as what we are now seeing appears to be an overall market recovery.
The signs are clear. Bitcoin reached $63,000 in 24 hours and altcoins have made sustained progress since then. Also, the total market capitalization of cryptocurrencies reached $2.34 trillion, an increase of 5.11% in 24 hours.
This market recovery is no coincidence. In fact, $370 million flowed into Bitcoin ETFs thanks to recent US data that gave investors confidence. This renewed interest has significantly strengthened market confidence in the cryptocurrency, after it dropped significantly to $34.4 million on May 2nd. This confidence was further boosted by Hong Kong, which recently adopted a Bitcoin and Ethereum ETF, acquiring 4,128 BTC within three days.
Accumulation of virtual currency during recession
The recovery in the cryptocurrency market is also being driven by changes in the investment strategies of institutional clients. Indeed, as Fidelity Digital Assets recently demonstrated, many pension funds and high-net-worth individuals are increasing their interest in cryptocurrencies.
Several experts also point out that the accumulation of high-potential cryptocurrencies during the downturn also contributed to the overall market recovery.
It can be seen that the combination of these factors has contributed to breathing new life into the crypto market after a long period of lethargy. For many, now is the time to take action. We expect Bitcoin to set new records within the next six to nine months.
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Toulouse Scientific Diploma and Certification Consultant Alila Blockchain Exam Rejoined 2019 Coin Tribune. Examining the potential of blockchain in the field of economics, and the relationship between public sensibilities and information providers that will bring about a certain evolution of the social system for learning economics. The month is about understanding blockchain and its opportunities. Analyze the purpose of reality, decipher the trend of marche, analyze the innovative technology and perspective, and analyze the social revolution of marche.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
