The sharp price increases in bitcoin (BTC) appeared to halt on Wednesday morning as traders probably cashed out of a week-long surge that saw prices rise as much as 25% in anticipation of the U.S. government approving spot exchange-traded funds (ETFs).Major tokens moved in different directions. Cardano’s ADA fell 2%, while Solana’s SOL tokens gained 3%, bringing the total gain for the week to about 30%.As traders played down concerns about an impending sell-off by the FTX bankruptcy estate, SOL token values increased.
With a gain of 0.42%, the CoinDesk Market Index (CMI), a comprehensive tracker of hundreds of tokens, indicated modest advances in the market as a whole.A negative market known as “crypto winter,” which is marked by lower pricing and few venture capital expenditures, may be coming to an end, according to some traders, if institutional adoption becomes apparent.
“What we are potentially seeing is a permanent thawing of so-called ‘crypto winters.’ While the digital asset market will always have bulls and bears, institutional adoption is pushing us closer to perpetual spring,” shared Diogo Mónica, co-founder at Anchorage Digital, referring to the many spot ETF applications.
“Between recent price action and movement toward spot Bitcoin ETF approval, the long-term outlook for Bitcoin is the most promising it has been in recent memory—and institutions are just getting started,” Mónica added.
Furthermore, in a Telegram broadcast, cryptocurrency trading company QCP Capital stated that the present excessive demand for the commodity is being driven by the expectation of a spot bitcoin ETF.
“Steps taken by Blackrock, including a DTCC listing and tickerization (IBTC), gave the market hope that the SEC approval is imminent,” QCP said. “However, we do not think that this signals an impending SEC decision in the coming week.”
“Instead, we believe the SEC will avoid playing the role of kingmaker, sticking with its own precedent set during the BTC/ETH futures ETF approval process and will wait to approve multiple managers at the same time,” the firm opined.