On Thursday, the crypto market showed some life again with a double dose of positive news. Bitcoin, the biggest crypto in the market, gained 8% value and breached the $66,000 mark once again. The surge helped Ethereum (12%) and XRP (4%) also make a comeback.
According to market experts, the turnaround can be accounted for by two factors. The first is the Fed’s suggestion to slow down interest rate hikes. Governor Lael Brainard recently shifted the Fed’s stance on allowing riskier assets like crypto due to a tight monetary policy.
Second, the more impactful news came from the finance giant BlackRock. The market was flooded with news suggesting that BlackRock plans a $5 trillion project by 2030.
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The firm made news earlier as one of the early ventures to apply for a US-based spot BTC ETF. The mere whispers of BlackRoch potentially entering the crypto market have helped the industry rejuvenate.
Although the said factors play a crucial role in determining Bitcoin’s performance, analysts are also considering the upcoming BTC halving. With the fourth BTC halving due in April 2024, the crypto market is winding up for a potential bull run that can last months.
And while Bitcoin’s meteoric surge in the past few months is exciting, experts have suggested traders cautiously proceed. Therefore, BlackRock’s potential entry has become a pivotal factor.
The finance firm can trigger price hikes across the board, boosting the likes of XRP, ETH, SOL, and other altcoins. April will be a game changer for the crypto market, dictating the flow of the rest of 2024.
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The following Federal Reserve policy will take a while, but the recent suggestion of a forgiving monetary policy is vital. Moreover, an official confirmation from BlackRock regarding the $5 trillion entry can massively impact investor sentiment.
