Is this the real mysterious reason behind Bitcoin, Ethereum and Crypto price surge of $100 billion?

[ad_1]

Bitcoin, Ethereum and other major cryptocurrencies have soared this week, adding $100 billion to the combined crypto market that some say is going “parabolic”.

Subscribe now to Forbes CryptoAsset & Blockchain Advisor and successfully navigate the latest bitcoin and crypto market crash

The price of bitcoin has risen above $25,000 per bitcoin for the first time since last summer, as traders bet the Federal Reserve could make a dramatic U-turn and despite fears of a growing US war on crypto.

Now data has revealed that the $100 billion bitcoin, ethereum and crypto price surge this week could have been triggered by institutional investors who poured over $1.5 billion into the crypto market.

A brutal bear market is when you need up-to-date information the most! Sign up now for CryptoCodexA’s free daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market

MORE FROM FORBES’New CEO’-Elon Musk Teases Twitter Shake-Up, Sending Bitcoin Rival Dogecoin Price SoarBy Billy Bambrough

The price of bitcoin jumped higher this week, driving up the price of etherem and other smaller… [+] cryptocurrencies, as fears swirl around impending crypto regulation.

AFP via Getty Images

“We found that multiple funds/institutions have poured nearly $1.6 billion into the crypto market since Feb 10,” bitcoin and crypto data analysts Lookonchain posted on Twitter, linking to multiple addresses. “mysterious” and explaining how the USDC stablecoin issued by Circle was used. send funds to various exchanges.

USDC is the second largest stablecoin in the world with a total market capitalization of nearly $42 billion. TetherUSDT, the largest stablecoin, has a total value of just over $70 billion.

The bitcoin and crypto market fell below $1 trillion this week following the announcement of regulatory action against another major stablecoin, BUDBUSD, a $13 billion Binance-branded stablecoin pegged on the dollar, issued by Paxos.

BUSD saw nearly $3 billion in buybacks this week as traders cash out the stablecoin. Binance’s CEO said via Twitter that he expects the number of BUSD in circulation to continue to decline after Paxos was ordered to stop issuing it.

New York’s top financial regulator has been briefed on data suggesting Binance doesn’t have enough reserves to back BUSD by Circle, Bloomberg reported, escalating the battle between stablecoin issuers as they battle for protection. market dominance.

Meanwhile, the latest US inflation showed consumer prices continued to fall in January, rising at an annual rate of 6.4% and fueling hopes that the Fed could declare victory in its war on the spike in inflation later this year.

“As we have been saying for three months now, inflation data in the United States is likely to decline further and unsurprisingly, we have seen a strong recovery,” wrote Markus Thielen, head of research at Matrixport, in an article. note sent by e-mail.

Sign up now for CryptoCodexA free daily newsletter for the crypto-curious

MORE FROM FORBES’In Excess of A Trillion Dollars’-Bitcoin and Crypto Mogul Reveal Wild ChatGPT PlanBy Billy Bambrough

The Bitcoin price has come down from its recent lows through 2023 but remains well below its 2021 level… [+] peak of almost $70,000 per bitcoin weighing on the price of ethereum.

Forbes Digital Assets

However, some long-term bitcoin price watchers are reluctant to call the end of the recent bear market, known as crypto winter, and the start of a bitcoin and crypto price spring.

“The price of bitcoin has risen sharply since the start of the year, but those who have been in the crypto space for multiple cycles are loath to call any rally the start of a bull market,” said Alex Adelman, chief executive of the Bitcoin Rewards app. Lolli, said via email.

“While the current surge in bitcoin prices and trading volume indicates heightened market confidence, ongoing price trends will always be guided by regulation, inflation, and other crypto industry developments. “While crypto markets have started the year on a high note, the FTX collapse has weakened many businesses and people in the crypto space, and there may well be more victims of the fallout.”

[ad_2]