Hassan Maishera
The cryptocurrency market is slowly recovering from the declines experienced over the past three months, with the prices of the leading coins rising again.
BTC and Ether prices rising again
The general cryptocurrency market has embarked on a slow recovery journey in recent weeks. The market began 2021 in an excellent fashion, crossing the $2 trillion market cap in April when Bitcoin raced to a new all-time high of roughly $65,000.
Ether and other major cryptocurrencies like Binance Coin also set new all-time highs in May. However, the market has been in a bearish mode since, with prices of most cryptocurrencies down by over 40% from their all-time highs.
The market is starting to turn things around, with Bitcoin reaching the $45k level again for the first time in weeks. Thanks to this latest rally, Bitcoin’s price is up by nearly 15% in the past week. The market cap of the broader cryptocurrency market now stands at $1.8 trillion, with Bitcoin accounting for 46.4% of it ($844 billion).
Ether is also experiencing a massive rally, crossing the $3,000 mark again. ETH is currently up by 18% over the past week, with its recent rally fueled by the London hard fork event which took place on the Ethereum network last week. With the London hard fork now activated, the fee structure on the Ethereum network would be more predictable, making it easier for users to determine if they are ready to pay the transaction fees at a certain time or not.
Adoption continues to rise despite market conditions
One of the key factors moving the cryptocurrency market is its adoption. In recent months, traditional financial institutions have taken a liking to cryptocurrencies. The adoption continued despite Bitcoin and other cryptocurrencies losing some of their value.
Last week, JPMorgan was reported to have started providing exposure to cryptocurrencies to its wealthy clients via crypto funds like GBTC. Asset manager GoldenTree also began buying and holding bitcoins on its balance sheet. Thus, implying that institutional investors continue to invest in cryptocurrencies despite the present state of the market.
