As of Thursday, it appears that digital currencies are on a roll, as eight of ten leading currencies gained as much as 14 percent. Among the top performers include Bitcoin, Dogecoin, and Polkadot.
Despite the recent setbacks, crypto recovered moderately strong as El Salvador and South Korea’s policies widening the digital tokens’ acceptability.
El Salvador and South Korea are expected to pave the way for the mainstream acceptance of cryptocurrency. El Salvador leads the world in pioneering the granting of legal tender status to Bitcoin. The country’s legislature approved the measure introduced by President Nayib Bukele.
Bukele also announced that El Salvador is partnering with Strike to develop the first modern bitcoin-powered financial infrastructure.
Meanwhile, a similar move is expected from South Korea, with a new crypto measure now in the works and to be introduced to the National Assembly.
Institutional investors make inroads
Recently, institutional investors have been keener on considering digital currencies. For one, Invesco intends to launch twin crypto-focused exchange-traded funds, notwithstanding the delay of a US Bitcoin ETFs’ approval.
In addition, Interactive Brokers Group Inc also intends to start crypto trading via its brokerage firm, in a statement by its chair.
Analysts are quick to welcome the progress and suggest that better regulation of digital currencies is needed to put investors’ minds at ease. For this emerging set class to take off, Mike Novogratz, founder of Galaxy Digital, says that institutional investors need to feel “more comfortable” with it.
Some trade desks are less optimistic – for now.
ZebPay Trade Desk said that while there have been gains this week, most crypto assets are still in the red, with a drop in price, volume, and market capitalization. In general, market sentiment towards digital assets remains bearish but displaying lesser volatility.
The most important takeaway is that cryptocurrency has “gained traction” within institutional investors this week.
How has cryptocurrency performed?
The crypto market saw significant rebounds this week. A 9% growth was recorded on Wednesday as Bitcoin surged to the $37,000 level. With the exception of stablecoins, the ten leading cryptocurrencies have also gained by not less than 5% within a 24-hour period until 9.30 hours IST.
Bitcoin has experienced a series of fluctuations of late. Based on technical analysis alone, investors are bound to have mixed feelings about the digital asset, yet the prospect of a bear market appears within the horizon by all indications. This after BTC broke the June 7 rising wedge pattern and now holds short-term support despite resistance – a trend that could turn either way: bullish or bearish.
Analysts expect a revival of BTC’s bull run if it breaks the $40,000 level.
