Bitcoin pump leads to significant gains in the crypto market, fueled by optimism surrounding the potential approval of a spot bitcoin exchange-traded fund (ETF) in the U.S. The price briefly exceeded $35,000 before retracing, with demand ahead of the ETF approval and $178 million in short liquidations adding to the buying pressure. As a result, the total market capitalization increased by 8%, reaching levels not seen since mid-August.
As Bitcoin dominance crossed 50%, it indicated a general demand for the sector. Ethereum gas fees spiked by 400%, signaling an increase in on-chain token trading, particularly riskier trades. Tokens such as HarryPotterObamaSonic10Inu (traded with a BITCOIN ticker) and SPX6900 (SPX) surged by as much as 40%.
Gains in Solana and Aptos Slow Down
On the other hand, gains in Solana (SOL) and Aptos (APT), layer 1 blockchains, slowed down after a 30% rally in the past week. This development alleviated concerns of a supply overhang leading to sell-offs in both tokens. Some traders maintain a bullish outlook for these tokens, considering them as representatives of the current Layer-1 public chains.
James Wo, founder and CEO of crypto fund DFG, stated that Aptos represents an emerging public chain with advanced technology and a strong user base, while Solana has a successful commercialization operation, a robust ecosystem, and a large user base. Solana has been undervalued due to its connection to the FTX collapse, but as time passes and it becomes evident that FTX’s assets are frozen, positive news in the sector is increasingly impacting SOL.
FTX Bankruptcy Estate Stakes SOL
Bankrupt crypto exchange FTX was an early investor in Solana and holds over $1.16 billion worth of SOL, according to a court filing. However, the FTX bankruptcy estate recently staked 5.5 million SOL, worth $122 million, quelling bearish concerns.
MINA Experiences Spike After Upbit Listing
Additionally, MINA experienced a spike of up to 70% after being listed on Upbit, South Korea’s largest crypto exchange. Upbit surpassed Coinbase and OKX in terms of trading volume in July.
Conclusion
In conclusion, the Bitcoin pump led to significant gains in the crypto market, driven by optimism surrounding the potential approval of a spot bitcoin ETF in the U.S. The surge can be attributed to demand ahead of the ETF approval and short liquidations, which added to the buying pressure. With the total market capitalization increasing by 8% and Bitcoin dominance crossing 50%, it’s clear that there is a general demand for the sector.
While gains in Solana and Aptos slowed down, traders remain bullish on these tokens, considering them as representatives of the current Layer-1 public chains. The staking of SOL by the FTX bankruptcy estate also alleviated bearish concerns. Lastly, MINA’s spike after being listed on Upbit highlights the impact of exchange listings on token prices.
As the crypto market continues to evolve, it’s essential for investors to stay informed and make decisions based on the latest information and trends. The recent Bitcoin pump and its effects on the market serve as a reminder of the potential opportunities and risks in the world of cryptocurrency.
