Key Points
- Several cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and XRP, are showing signs of recovery following a market dip earlier this month.
- Bitcoin’s rebound has been linked to a positive shift in crowd sentiment and increased activity in US spot Bitcoin ETFs.
The cryptocurrency market experienced a significant downturn earlier this month, leading to a drop in the prices of numerous digital assets. During this period, Bitcoin (BTC) fell below $50,000, triggering concerns among investors and traders. However, several of these cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and XRP, have now entered a recovery phase.
Bitcoin’s Rebound
The leading cryptocurrency has made a comeback in less than three weeks. On Tuesday morning, the coin’s value exceeded $61,000, although the market has seen some fluctuations since then. Current data from CoinMarketCap shows BTC trading at $60,813.20, marking a 3.87% increase in the past 24 hours.
Blockchain analytics platform Santiment revealed a chart indicating that crowd sentiment is increasingly bullish for most top coins. This shift in sentiment has been observed “since the August 5th bottom, and BTC +19% since that fear-causing crash.” Market experts and observers have expressed confidence in Bitcoin’s ability to maintain a value above $60,000 this week.
It’s worth noting that the increase in Bitcoin’s price coincided with the second-highest inflow activity for US spot Bitcoin ETFs in August. The investment fund reported up to $61 million in net inflows, only second to the $192 million recorded on August 8, according to data from SoSoValue. Leading investment asset management firm BlackRock led the group with a total inflow of $92 million.
Conversely, Bitwise’s BITB saw outflows worth $25 million.
Positive Market Sentiment for SOL and XRP
XRP and SOL have also shown signs of recovery, with price increases of about 7% and 4%, respectively. At the moment, XRP is trading at $0.6107, reflecting a 7% increase in the last 24 hours. Similarly, SOL is valued at $146.31, following a 4.6% rise in the past 24 hours. These digital assets could either see further price increases or fall below their current support levels.
Over a week ago, the Brazilian Securities and Exchange Commission, also known as CVM, approved Solana ETFs in the region. This decision led to an increase in SOL’s price, allowing it to reclaim the daily 50 and 200 Moving Averages (MAs) as a support level. SOL also surpassed Binance’s native coin BNB in terms of market capitalization.
There is anticipation that a similar trend could occur if the US SEC also approves the spot Solana ETF filings submitted by VanEck and 21Shares. In other words, SOL could experience further price increases if it obtains ETF approval in the US. However, the likelihood of such approval is still uncertain, especially after both Solana ETT filings disappeared from the CBOE website last week.
