What To Expect From Top Crypto Assets ⋆ ZyCrypto

• Market indicators like the futures market, miners’ balance, and institutional demand predict an uphill run for digital assets.
• Top assets continue to rally on the back of BlackRock’s spot BTC ETF application for five consecutive days posting surges up to 20%.
• As the market awaits the SEC’s approval of the first Bitcoin ETF, analysts and market executives suggest that we are in the “great accumulation” phase of acquiring BTC.

After a brilliant run in the first quarter, the cryptocurrency market recorded its first loss in May, with a 6.9% decline due to uneasy regulation and uncertainty in interest rate hikes.

Major cryptocurrencies are getting out of the woods after recording surging values this week, with Bitcoin (BTC) hitting new points not seen in 12 months. Experts suggest that digital assets could still continue its rally due to increased market activity as well as other indicators.

The surge in mining stocks is a factor that points to a healthy market. A bearish market always leads to plunging mining stocks leaving miners scrambling for gains to stay afloat. Bit Digital recorded a 77% in its stock following its expansion plans in Europe as well as TeraWulf who also saw similar growth.

The profitability of BTC mining grew following a sharp popularity of Ordinals on the network. BTC miners generated $916.6 million in May marking a 13.7% increase from April. As noted, increase in transaction volume led to a boost in gas fees across many networks

The BTC option market is another surging criteria analysts have relied on to speculate on the price action. The option market recorded trades worth $3.3 billion on June 22, its highest level in the past three months. 

VC and Wall Street funds hit the market

Although observers have noted an increase in almost every market activity including non-fungible tokens and other decentralized applications, the leading factor in this uphill run has been the thirst of “big money” in virtual assets. 

Venture Capital investments in the market topped $1 billion for the first time since Sept 2022 and fell significantly lower after the collapse of FTX. VC interest increased by 34% in April marking the third consecutive rise after a strong showing in Q1 2023. 

This past week has ushered in a new drive of institutional investors in cryptocurrency products with many coming in from Wall Street. Following the application for a spot BTC application by BlackRock, the floodgates for more applications were opened. Several firms including WisdomTree and Invesco have made similar applications alongside top bank officials hailing the merger of digital assets and traditional finance.