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Crypto price movements over the past 7 days
Crypto prices continue to showcase bullish strength, with Ethereum and ETH beta coins now joining Bitcoin’s pre-halving rally.
After dipping to a yearly low of $38,600 last month, the Bitcoin price has surged by 36% to hit a new yearly high of $52,660 on the 16th of February. BTC has since adopted a consolidatory price action, remaining range-bound between $51,000 and $52,400.
Bitcoin price chart over the past month
On the other hand, Ethereum is on the cusp of hitting the $3,000 price point, thanks to a 10% rally over the past week. The ETH/BTC chart is printing bullish candles and appears poised for a breakout.
An Ethereum bull rally is expected to usher in the next “altseason”, which could lead to many large cap and low cap coins surging towards new all-time highs.
Why Are Crypto Prices Going Up
While Bitcoin, Ethereum and several other altcoins have already printed new yearly highs, the bulls remain confident that crypto prices will continue to skyrocket in the coming weeks.
Here are the three reasons why experts are projecting the crypto market to go parabolic soon:
Bitcoin Halving & Spot ETFs Creating Supply Shock
According to CoinGecko’s countdown, the upcoming Bitcoin halving is just 60 days away, currently on pace to occur on the 21st of April. Based on previous market cycles, the bulk of the Bitcoin bull run may start a few months after the halving.
However, investors appear to be front-running the event which has already led to the BTC price trading near $53,000. Indeed, this would be the first time in history when Bitcoin has broken out above the 0.618 Fibonacci level – which is currently at $48,500 – before the halving. A monthly close above this level will likely lead to a strong bullish continuation.
The recently approved spot Bitcoin ETFs are also contributing to the high demand, recording the largest weekly inflow worth $2.45 billion last week.
Last week saw the largest weekly inflows into #Bitcoin ETFs on record at $2.45Billion.
?$BTC supply is shrinking while the demand is escalating.
?Basic economics combined with the upcoming #Bitcoin halving will undoubtedly send Bitcoin price through the roof. pic.twitter.com/LaRYsAfnIP
— Litest (@LitestApp) February 20, 2024
With the demand for Bitcoin on a steep rise and with the upcoming halving set to cut BTC’s supply in half, investors are gearing for a negative supply shock that could send the Bitcoin price much higher in the coming months.
The BTC supply on all exchanges has already hit its lowest level since 2017 while Coinbase holds the lowest confirmed supply since 2015.
#Bitcoin on all exchanges hit lowest level since 2017. In connection with the increased demand by ETFs and the upcoming Bitcoin halving, there will be even fewer coins in circulation.
It’s not priced in. Supply shock is real. pic.twitter.com/IJ1ljI4hyZ
— Carl ? MENGER ?????? (@CarlBMenger) February 19, 2024
Ethereum Spot ETF & Dencun Upgrade
After lagging behind Bitcoin for months, Ethereum has started its bull run and appears poised to break out above $3,000.
Interestingly, ETH is witnessing a negative supply shock of its own, which has led to the ETH/BTC pair being up 20% since the Bitcoin ETF launch lows.
Since the BTC ETFs launched, 8 ETFs have accumulated a total of 268,149 $BTC ($13.97B). Excluding Grayscale. Massively impressive.
And yet ETHBTC is up 20% since ETF launch lows. Why?
My hypothesis is that a lack of supply of ETH (built up over the past few years) is starting…
— Vance Spencer (@pythianism) February 19, 2024
The demand for Ethereum is also surging, with investors believing it will experience a similar price rally to Bitcoin before the approval of spot ETH ETFs. After all, BlackRock – one of the applicants for the spot ETH ETF – has a stellar 576 to 1 record in gaining the SEC’s approval.
The upcoming Dencun upgrade – set to occur on March 13th – will also boost the Ethereum price, considering it reduces the cost of layer-2 transactions and data availability. Once the ETH/BTC pair reclaims the 0.06 level, it could propel the second largest cryptocurrency towards a new all-time high.
Federal Reserve Adopts Dovish Monetary Policy
Smart-money traders are also anticipating the Federal Reserve to start cutting its benchmark interest rate starting March or May of this year. A dovish monetary policy is typically bullish for the equities market and risk assets such as cryptocurrencies.
The CME FedWatch tool is currently showing a 34% probability of the Fed reducing its Federal target rate.
Fed meeting target rate probabilities
Which Tokens Could Explode Next?
After Bitcoin and Ethereum, some traders are rushing to invest in XRP – the only lagging large cap – while it is still undervalued. The XRP price is currently trading at $0.56 – however, it could soon surge to $0.85 if the bulls manage to breach the crucial 100-day Simple Moving Average, which is currently at $0.585.
Amongst the midcaps, OpenAI CEO Sam Altman’s Worldcoin is showcasing strong growth, surging 158% over the past week. Analysts believe that $WLD is set to start its second leg up.
Newly launched coins that are based on memes continue to steal the spotlight. Following in the footsteps of Bonk, Wen, Dogwifhat and Myro, a new Solana meme coin – Smog (SMOG)?– is showing a strong bull rally.
Top ten hot pairs on Solana chain
Owing to its ambitious airdrop campaign which aims to reward 10,000+ community members, the $SMOG price is currently up close to 5000% since its launch on 7th Feb and one of the top trending cryptos on Solana. View the latest price chart on DEXTools.
However, with Ethereum now taking over the crypto bull rally, ETH-based meme coins could be the next crypto to explode.
Aside from large caps such as Pepe, low cap meme tokens such as Meme Kombat and Sponge V2?are attracting significant investor attraction.
$MK has already raised close to $10 million in one of the most incredible crypto ICOs, owing to its Play-to-Earn game and staking program, which is currently offering over 100% APY.
Sponge V2 launch on Polygon chain
Sponge V2 recently went live on Polygon on 6th Feb and rallied over 140%. View the latest price chart on DEXTools.
Related
- Crypto Price & Portfolio Trackers
- Next Crypto To Explode In 2024 – Which Coins Will Soar?
- The Rise Of Viral Cryptos – Best Meme Coins To Watch
