The crypto market had a bullish outlook on Friday, with optimistic expectations of ending the week on a similar positive note. After enduring four weeks of short-term uncertainty, the price of Bitcoin (BTC) saw a 5 percent increase over the course of five days, reaching approximately $26.6k during the early London session on Friday. Similarly, the second-largest digital asset, Ethereum (ETH), has gained about 6 percent since Monday, contributing to the total crypto market capitalization climbing to around $1.1 trillion.
Catalyst behind Crypto Market Surge
Several factors have contributed to this bullish sentiment in the crypto market over the past few days. For instance, the decision by the ECB to raise interest rates by 25 basis points to a record high of approximately 4 percent has bolstered investor confidence in both Bitcoin and altcoins globally. Additionally, the Consumer Price Index (CPI) and Producer Price Index (PPI) data, which indicate the general inflation rate, exceeded Wall Street’s expectations.
Furthermore, the crypto market has been buoyed by positive news, with institutional investors continuing to express interest in this emerging technology. For example, Franklin Templeton joined other asset managers like BlackRock, Valkyrie, and Ark Investment in filing for a Bitcoin ETF with the United States Securities and Exchange Commission (SEC) earlier this week. Additionally, Germany’s 153-year-old bank, Deutsche Bank AG (NYSE: DB), has announced a strategic partnership with Taurus SA to offer digital asset custody services.
In terms of price action, the crypto market is still technically facing some uncertainty until Bitcoin’s price surpasses the $27k mark in the coming days, thereby invalidating the short-term bearish sentiment. Consequently, there remains a significant possibility of a reversal in the near future, which could potentially push the total crypto market capitalization back below the $1 trillion mark once again.