Investors Remain Optimistic After Bitcoin Closes At Key Support To Edge Panic Selling

The Rise of bitcoin and Altcoins

The digital asset market has recently experienced price spikes, with bitcoin reaching a 16-month high due to speculation about a potential spot BTC Exchange Traded Fund (ETF) approval by the Securities and Exchange Commission (SEC).

Investor interest in bitcoin has sparked spikes in several altcoins, leading analysts to believe that the crypto winter may be coming to an end.

After recovering from losses incurred in the previous year, bitcoin‘s price surged to a 16-month high, surpassing $35,000 as speculation about a spot ETF approval grew. bitcoin‘s price has since slowed down, trading sideways at just above $36,000.

While the hype surrounding bitcoin has waned, several altcoins are experiencing double-digit gains, attracting both retail and institutional traders as the market rebounds.

The Surge of Altcoins

XRP has led the altcoin rally with an 11% growth following announcements of multiple deals, including its acceptance in Dubai and its central bank digital currency (CBDC) platform being used by the Bank of Georgia and five other countries.

Solana (SOL) has seen a 9% surge in the last 24 hours, 17% in the past week, and an 87% increase from last month, reaching a trading price of $48.86. Toncoin (TON) has also experienced a 3.53% increase in the last 24 hours, a 16% rally in the last seven days, and a 23% rise from last month.

Chainlink (LINK), Polygon (MATIC), and Cardano (ADA) have all soared by 15.85%, 25.21%, and 20.86%, respectively, in the last seven days.

At the time of writing, ethereum (ETH) is trading at $2,063 with a slight over 4% increase in the past week, indicating a climb after weeks of stagnation. While bitcoin continues to dominate the market in terms of investment products, altcoins have also seen new growth.

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Altcoin Products and Institutional Investors

A new CoinShares market report reveals that institutional investors are shifting towards altcoins, with the wider market experiencing inflows of $261 million for the sixth consecutive week.

ETH products recorded inflows totaling $17.5 million, as investors sought to recover from previous losses. ethereum-based products have seen exits despite the rollout of multiple futures ETFs, leading Solana’s products to lead the altcoin rally.

Despite slow wholesale products associated with ETH, many money managers believe it has the most growth potential in the cryptocurrency market due to its staking features and increasing decentralized applications volume.

On the other hand, Solana has become a favorite among institutional investors due to consecutive inflows in the market. Chainlink also saw inflows of $2 million, bringing the total investments in altcoin products to 17% of the entire market.

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By Team