The cryptocurrency market shows signs of recovery after the recent inflation data in the US. Bitcoin and Ethereum are drawing attention from institutional investors.
Increasing Interest in Bitcoin and Ethereum
According to the latest report from QCP, Bitcoin regained its strength after falling to $107,000 in September and is now holding steady above this level. There has been a constant inflow into spot Bitcoin ETFs over the last five days, highlighting the growing interest from institutional investors. For Ethereum, last week marked significant inflows, the highest recorded over the last two weeks, despite the SEC's decision to delay its ruling on Ethereum staking ETFs.
Price Rise in Altcoins
The altcoin market has demonstrated notable activity. CoinMarketCap’s Altcoin Season Index rose to 72, with the total market value of altcoins reaching $1.73 trillion. QCP suggests that capital inflow into altcoins could accelerate if Bitcoin's price trends toward $120,000. Significant price increases have also been observed in XRP and Solana, despite delays in Franklin Templeton's ETF applications.
Impact of Macroeconomic Factors
Macroeconomic indicators remain under close observation. Persistent inflation and weakness in the labor market pose significant risks to the Federal Reserve’s approach to interest rates. Consequently, the direction of the cryptocurrency market continues to rely on Fed decisions, capital flows to existing ETFs, and upcoming decisions on pending ETFs.
The cryptocurrency market exhibits signs of recovery due to the growing interest from institutional investors in Bitcoin and Ethereum, while altcoins are also actively trending upward.
