The crypto market has seen a massive increase, rising to around $2.75 trillion in the last 24 hours. This growth shows that investors’ interest in cryptocurrencies has increased and the markets have entered a strong recovery process. Ethereum (ETH) is the leading cause of this rise. ETH has gained 20 percent to around $3,699 and is at the epicenter of the recent crypto recovery.
There are several important reasons why the crypto market is so high today. Chief among these is the increased likelihood of spot Ethereum ETF approval.
The crypto industry has reacted to the news that the United States Securities and Exchange Commission (SEC) may be preparing to approve spot ETH ETFs. From a political perspective, the Biden administration has dramatically changed its perspective on crypto after former president Donald Trump gained a lot of attention by supporting the crypto industry ahead of this year’s election.
Spot Ethereum ETF will offer investors the opportunity to invest in Ethereum directly and easily. This increased Ethereum’s liquidity, causing prices to rise. Spot ETFs are known to make it easier for investors to enter the markets and make assets accessible to a wider audience. The expectation of this approval increased investors’ confidence in Ethereum and triggered purchases.
The second important reason is the short squeeze scenario. Short squeeze occurs in an environment where investors make excessive short sales and are forced to close these positions as prices rise rapidly. This creates strong upward pressure on the market, causing prices to rise even further. This short squeeze in Ethereum in the last 24 hours contributed to the rapid increase in prices and the reduction of selling pressure in the market.
As the third reason, the impact of the regulatory scope developed in the USA attracts attention. Clearer and protective regulations for digital currency markets increase investors’ confidence in this market. As the U.S. government and regulators take steps to make crypto markets more secure and transparent, investors may begin to feel more confident and increase their investments. These developments may help increase liquidity and raise prices, especially by facilitating the entry of large institutional investors into the market.
The US Congress has stepped up efforts to regulate the cryptocurrency industry in recent months ahead of the November elections. In India, the government is inevitably moving towards cryptocurrency adoption and regulations similar to those in Europe and the MiCA framework.
In conclusion, this huge rise in the crypto market was caused by the coming together of many factors. The decline in Bitcoin’s dominance and the rise of Ethereum may indicate the beginning of a new era in the crypto world. This dynamic change seems to allow investors to reconsider their strategies and evaluate opportunities in the market.
You can access current market movements here.
