The crypto market increased in the past 24 hours to about $2.75 trillion on Tuesday during the Asian session. Ethereum (ETH) remained at the epicenter of the recent crypto rebound, with a 20 percent rise to about $3,699. The ETH/BTC pair spiked over 13 percent in the past 24 hours, thus accelerating crypto cash rotation from Bitcoin.
Moreover, Bitcoin’s dominance has signaled an inevitable reversal in the near term via a bearish divergence on the Relative Strength Index (RSI).
Top Reasons Crypto Edged Higher Today
Spot Ether ETF Approval Frenzy
The crypto industry has reacted to the news that the United States Securities and Exchange Commission (SEC) could be preparing to approve spot Ether ETFs. From a political standpoint, the Biden administration has dramatically changed its view on crypto after former president Donald Trump attracted significant attention by endorsing the crypto industry ahead of this year’s election.
According to market pundits, the approval of spot Ether ETFs in the United States will signal the adoption of the entire altcoin industry, thus acting as a major bullish trigger.
Short Squeeze Scenario
As Bitcoin and Ethereum prices traded below $60k and $3k respectively in the recent past, most crypto derivatives traders anticipated further correction. However, the ongoing crypto rebound, which resulted in the liquidation of more than $350 million, has turned most short traders into buyers, thus triggering a short squeeze.
Improved Regulatory Scope
The US Congress has accelerated its efforts to regulate the cryptocurrency industry in the recent months ahead of the November elections. In India, the government has been moving towards inevitable cryptocurrency adoption and regulations similar to those in Europe and its MiCA framework.
As a result, more institutional investors are willing to enter the crypto space due to clear regulatory frameworks.
Also Read : Top Altcoin Set To Outperform This Week as Crypto Bull Run Begins
