Crypto market looks green again

it is always encouraging to see the crypto market so firmly in the green. It is a sign that investors are confident in the future of crypto and that the market is maturing.

The crypto market is known for its volatility, but it has also experienced significant growth in recent years. The total market capitalization of all cryptocurrencies has reached to over $1 trillion today.

After months of stagnation, bitcoin has finally moved past $28,000 as ETH is heading towards $1,800. No doubt both are enjoying an uplift from the approval won by the Valkaree investment fund to hold both ETH and BTC futures, which will potentially bode well for other ETH futures applications that are currently in the pipeline.

As per experts, October is also typically a good month for the cryptocurrency market. Indeed, it is dubbed “uptober” by market insiders. Only twice since 2013 has bitcoin closed at a loss in October, and hopefully, this year will see a continuation of that trend. In addition, we see some technical factors at play as short liquidations on crypto-tracked futures will have also provided an extra bump.

While many have predicted that 2023 will be the last year of the current bear market, though, it is likely a little too early to get excited by these current price movements. This is unlikely to be the beginning of a significant rally without any other catalysts to drive it. We also have the Sam Bankman-Fried trial adding to headlines too, just a little under a year from the spectacular collapse of FTX that marked the final leg down of this bear market, and that could take things either way.

There are a number of factors that could be contributing to the recent green streak in the crypto market. One possibility is that investors are becoming more confident in the future of crypto after a period of volatility. Another possibility is that investors are attracted to the potential for high returns in the crypto market.

It is also worth noting that the recent gains in the crypto market come at a time when the stock market is also doing well. This suggests that investors are generally feeling more bullish about risk assets.

S Mohini Ratna, Editor, VARINDIA