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Over the past 24 hours, the second most popular cryptocurrency, Ethereum, has added nearly 6%, rising to the $1,821 level. A recent tweet published by the Santiment analytics team hints at the reasons that have suddenly pushed ETH up.
Ethereum jumps 5.93%: reasons behind it
The main reason, per Santiment, for the Ethereum price surge is that it has been following the growth of Bitcoin, just like the rest of the crypto market. The flagship cryptocurrency recaptured the $28,000 level (surging by 7.71% within 24 hours) after the news of main Wall Street companies — Fidelity, Charles Schwab and Citadel Securities — launching a crypto exchange dubbed EDX.
📈 Powered by #Bitcoin's jump back above $28.8k & #Ethereum's return above $1,820, price pumps are being seen market-wide. Based on @santimentfeed's coverage of 2,648 #crypto assets, volume is 30.2% higher than the past week & discussion rates are up big. https://t.co/ZB9dcl8Tvv pic.twitter.com/TFIZha0ylk
— Santiment (@santimentfeed) June 21, 2023
The news of these top players entering the crypto space has apparently fueled the sudden spike of Bitcoin followed by Ethereum and other cryptos jumping in price as well. Prior to that, the world's largest wealth manager, BlackRock, announced that it filed for a Bitcoin spot ETF, with rumors about Fidelity having similar plans following almost immediately.
Besides, as reported by U.Today earlier, global wealth management company Invesco also filed for a spot BTC exchange-traded fund, according to a recently published SEC document.
Aside from the new Wall Street-backed exchange, a lot of dormant BTC whales have begun moving their Bitcoins back into the market, according to another tweet by Santiment.
Santiment also stated that Ethereum was pushed up not only by Bitcoin but also by a massive surge in trading volume on the crypto market — $222 billion last week, which was 30% more than the week before that seen.
Wall Street enters crypto, while SEC sues major exchanges
Last week, the crypto market experienced a wave of shock as the SEC filed charges against the two largest crypto exchanges in the U.S., Binance and Coinbase. The regulator claimed that these platforms violated U.S. securities laws.
This happened after SEC first sued Ripple Labs in late 2020 and has recently been clamping down on various crypto platforms, including, again, Coinbase (when it forbade them to launch a crypto lending service last year) and Kraken.
However, at the same time, large Wall Street companies are entering the crypto space as was mentioned above, including the largest bank in Germany, Deutsche Bank, now seeking a license to start offering crypto custodial services to its clients.
Some thought leaders in crypto believe that the SEC is sweeping out major crypto companies from the U.S., so that Wall Street giants can take their place and grab up their income. However, many Bitcoin maxis believe that Wall Street entering crypto is a great sign for Bitcoin adoption and for BTC's future.
Vladislav Sopov
Gamza Khanzadaev
Denys Serhiichuk
