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Presenting you with insights into what the crypto community is buzzing about each week!
Bitcoin's price surged above $37K after breaking above the major resistance at $35K, a price level last seen almost 18 months ago. However, it’s faced resistance at the $35K level. Altcoins have seen a similar spike in token prices, while trading volume across major exchanges is rising. Meanwhile, U.S. equities have seen an impressive rebound in price in November, with the Nasdaq up more than 8% in two weeks.
Source: U.S. Bureau of Labor Statistics via Bloomberg
The above labor statistics suggest the U.S. job market has cooled significantly, with weekly payroll percentage change down to pre-Covid levels. The normalizing labor market could be a significant reason behind the Fed’s halt in rate hikes in September and November. Historically, a low and stable interest rate is usually a positive sign for both growth stocks and cryptocurrencies.
This latest bull market differs from the previous ones that were driven by DeFi and NFTs. There’s no denying that institutional investors’ surging interests have been a major boost to Bitcoin, Ether and the rest of the altcoins, evidenced by the shrinking discount of GBTC and sustained inflows by institutional investors.
Source: YChart
The GBTC discount to its NAV has fallen lower than it did in November 2021, when Bitcoin was above $60K.
Source: CoinShares
Meanwhile, traditional crypto-themed ETFs have seen tremendous growth in inflows in the past month and a half.
The reputable ARK Invest has tapped 21Shares, the world’s first and largest issuer of crypto ETPs, introducing five more ETFs to the market at one go and reaffirming the strong demand from institutional investors. Bitcoin and Ether are the safer players in this TradFi-led bull market, as traditional investors have better access to Bitcoin and Ether-based futures ETFs or spot ETFs.