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In a significant market development, Ethereum (ETH) surpassed the $4,000 mark for the first time in over ten months, closing the first week of December with a notable 40% increase in the weekly period. This rally has been closely linked to a broader rally in the cryptocurrency market, particularly with Bitcoin (BTC), which recently hit new highs. all-time highs.
Ethereum surges 61% as ETF demand grows
According According to Bloomberg, Ethereum exchange-traded funds (ETFs) in the United States experienced unprecedented demand, recording a daily inflow of $428 million on Thursday alone.
This surge in investor interest reflects growing confidence in Ethereum, particularly after Donald Trump’s election victory on November 5, which ignited bullish sentiment around the world. crypto landscape. Ethereum has since surpassed Bitcoin, with a staggering 61% increase in value.
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He appointment The election of Paul Atkins to lead the Securities and Exchange Commission (SEC) has further bolstered enthusiasm for Ethereum. Atkins, an advocate for pro-cryptocurrency regulation and a member of the advisory board of advocacy group Token Alliance, is seen as a positive force for the cryptocurrency industry.
Bloomberg suggests that under his leadership, restrictions preventing investors from earning returns on Ether staked through ETFs could be reconsidered, improving the attractiveness of these investment vehicles.
Altcoin season in full swing
Nick Forster, founder of crypto trading platform Derive.xyz, noted: “Now that bitcoin has reached $100,000, it seems investors are looking for the next opportunity.”
Forster highlighted that Ethereum remains significantly below its all-time high of $4,878 reached in November 2021, prompting many investors to shift their focus and explore the profit potential in altcoins like ETH.
The growing interest in Ethereum is also evident in the derivatives market, where open interest in Ether futures contracts on CME Group Inc. has reached record levels, significantly outpacing the growth of Bitcoin futures.
Le Shi, CEO of market making firm Auros, noted that US institutions tend to favor regulated investment vehicles, resulting in a greater concentration of activity in CME Ether futures and ETH ETFs.
Furthermore, the founders of Glassnode (Yan Allemann, Jan Happel and Rafael Schutlze-Kraft) have pointed to altcoin resistance amid recent Bitcoin volatility.
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Even though Bitcoin saw a 13% drop, altcoins have largely maintained their value, indicating strong market sentiment. He Altcoin index Reaching 100 further confirms that the market is in the midst of an “altcoin season,” with expectations of significant moves as the weekend approaches.
Looking ahead, the outlook for the market’s second-largest cryptocurrency remains optimistic, with expectations rising for both institutional and retail investments as the current market cycle unfolds.
Analysts have already provided that gains could soon surpass Ethereum’s previous all-time price, setting the stage 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
