Bitcoin has shown tenacity by breaking above the $26,000 resistance mark, spearheading a rally among the top ten non-stablecoin cryptocurrencies. While Cardano and Toncoin suffered slight losses, the crypto market enjoyed increased optimism due to institutional adoption and blockchain innovation improvements.
Bitcoin had gained 1.62% in the last 24 hours as of 07:30 a.m. in Hong Kong, reaching $26,179.43. This surge transformed a weekly loss into a 0.75% gain. Bitcoin had previously traded in the $25,500 to $26,000 region, but it hit an eight-day high of $26,409.30 early on Friday.
JPMorgan Chase & Co., the largest bank in the United States by asset size, is said to be working on a blockchain-based digital deposit token for cross-border payments and settlements. Even though much of the underlying technology is in place, the bank is still waiting for approval from US regulators before generating the token. Deposit tokens, transferable digital assets representing deposit claims against a commercial bank, enable faster and more cost-effective transactions.
This decision by JPMorgan indicates that giant firms will continue to research blockchain technology even during market downturns. Markus Thielen, Matrixport’s head of research and strategy, stated that traditional players are making inroads into the crypto market. The recent statement by PayPal of its intention to develop a stablecoin has piqued the curiosity of institutional investors in cryptocurrencies.
The market is also waiting for the Securities and Exchange Commission (SEC) to rule on BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF), with likely approval pushing Bitcoin’s price above $30,000.
Separately, Martin Gruenberg, the United States Federal Deposit Insurance Corporation (FDIC) chairman, noted significant downside risks to the country’s banking system due to inflation, rising market interest rates, and geopolitical instability. Bitcoin has historically benefited from such uncertainties in the financial sector.
Ethereum gained 0.77% in the last 24 hours, reaching $1,644.68, while the other top ten non-stablecoin cryptocurrencies gained only little. Cardano’s ADA and Toncoin suffered slight losses but gained 1.07% and 3.68% weekly, respectively.
The total crypto market value climbed by 1.37% to $1.05 trillion despite an 11.95% fall in trading volume to $23.81 billion. These occurrences highlight the volatile character of the cryptocurrency market, which is influenced by market sentiment and institutional activity.
