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In an important development for the market, Ethereum (ETH) crossed the $4,000 mark for the first time in over ten months, closing the first week of December with a notable 40% rise on the weekly time frame. This rise has been closely linked to a broader rise in the cryptocurrency market, especially with Bitcoin (BTC), which has recently reached new levels. All-time highs.
Ethereum price rises by 61% as demand for ETFs increases
According to According to Bloomberg, U.S. exchange-traded funds (ETFs) saw unprecedented demand, recording a daily inflow of $428 million on Thursday alone.
This surge in investment interest reflects growing confidence in Ethereum, especially after Donald Trump’s election victory on November 5, igniting bullish sentiment around the world. Encryption scene. Since then, Ethereum has outperformed Bitcoin, achieving a staggering 61% increase in value.
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the Appointment The appointment of Paul Atkins to lead the Securities and Exchange Commission (SEC) has fueled enthusiasm for Ethereum. Atkins, a supporter of pro-crypto regulation and an advisory board member of the advocacy group Token Alliance, is seen as a positive force for the cryptocurrency industry.
Bloomberg notes that under his leadership, the restrictions preventing investors from earning a return on Ether through ETFs could be reconsidered, enhancing the attractiveness of these investment vehicles.
Altcoin season is in full swing
“Now,” Nick Forster, founder of cryptocurrency trading platform Derive.xyz, noted Bitcoin Its price has reached $100,000, and investors seem to be looking for the next opportunity.
Forrester highlighted that Ethereum remains well below its all-time high of $4,878 reached in November 2021, prompting many investors to shift their focus and explore the potential for gains in altcoins like Ethereum.
The growing interest in Ethereum is also evident in the derivatives market, where open interest in Ether futures at CME Group Inc. to record levels, significantly outpacing the growth in Bitcoin futures.
Lu Xi, managing director at market maker Aureus, noted that US institutions tend to favor regulated investment vehicles, leading to a higher concentration of activity in CME Ethereum futures and ETH ETFs.
In addition, Glassnode’s founders — Jan Alleman, Jan Hubel, and Raphael Schütlze-Kraft — have He pointed out For the resilience of altcoins amid Bitcoin’s recent volatility.
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Although Bitcoin fell by 13%, altcoins largely maintained their value, indicating strong market sentiment. the Altcoin Index Reaching 100 again confirms that the market is in the middle of “altcoin season,” with big moves expected heading into the weekend.
Looking ahead, the outlook for the second-largest cryptocurrency on the market remains optimistic, with expectations for both institutional and retail investments increasing as the current market cycle develops.
Analysts have already done so anticipation These gains could soon surpass Ethereum’s previous record price, paving the way for a potentially transformative period in the cryptocurrency market.
At the time of writing, ETH is trading at $3,990.
Featured image of DALL-E, chart from TradingView.com