Bitcoin and Ether are on a three-day rise, even after a court approved FTX’s sale of $3.4 billion in digital assets to repay creditors.
FTX and its creditor committees have set weekly sales of $100 million in digital currencies.
In Asian markets, Bitcoin almost reached $26,500 before slowing down. Ether, Ethereum’s native token, hit $1,635.
Experts say low trading volumes are limiting a solid price uptrend.
“Today could mark a third gain day, but weak trading doesn’t support a strong rally,” said an industry expert.
Recent data shows a net addition of 7,000 Bitcoins by long-term holders. In Ethereum, 129,000 ETH got staked in the last day.
As of this morning, Bitcoin was up by 1%, trading at $26,458.32. Ether increased by 1.4%, reaching $1,625.51.
The total market cap of all digital currencies is now $1.09 trillion.
Analysts also weighed in on U.S. inflation. They say its high rates have not majorly impacted cryptocurrencies or New York stock markets.
“Though we had high hopes, the effect is minimal,” said a market analyst.
Recent news about FTX’s planned asset sales hasn’t swayed investors much.
“Until U.S. regulators approve crypto ETFs, expect the market to stay steady,” concluded an expert.
Background
Bitcoin, born in 2009, pioneered the concept of decentralized finance. Ether followed in 2015, adding smart contracts to the mix.
These features attract both individual and institutional investors to the market.
However, regulatory concerns have often clouded the crypto landscape. FTX’s case is a recent example of how legal issues can impact the market.
Despite this, the crypto market has shown resilience, rebounding after each dip more often than not.
Market watchers have been anticipating the approval of crypto ETFs in the U.S. for a while now. Such approval could invite even more capital into the sector.
So far, these expectations remain unmet, but hopes are high.
Experts also note that mainstream adoption of crypto is on the rise. Companies like Tesla and PayPal have integrated digital currencies into their payment systems.
As more firms follow suit, the future for Bitcoin, Ether, and other digital assets looks bright, despite short-term market turbulence.