Monday’s trade saw a little decline in the cryptocurrency markets after Bitcoin crossed the 48,000 barrier over the weekend. In the past day, the value of the worldwide cryptocurrency market dropped by 0.8% to approximately $1.8 trillion.

Ethereum was down 1.15% at $2,498 while Bitcoin was down 0.14% at $48,128.

Other cryptocurrencies including Polygon, Avalanche, Cardano, and Solana saw 3-4% declines in the interim. Up to 3% declines were also seen in XRP, Dogecoin, Chainlink, Polkadot, Internet Computer, and Shiba Inu.

Given the spot ETF momentum, Bitcoin has been showing signs of rising price action since last week. According to a recent Glassnode post, it appears that we may be in the early phases of a bull market based on on-chain indices that determine the value of bitcoin.

The market for cryptocurrency is still rising, propelled by growing interest in and use of Bitcoin Spot ETFs. Bitcoin increased by more than 6% in a single day over the weekend, breaking through barrier at $49,000 and closing above $48,000 today. The price might move toward $50,000 and possibly even the all-time high area above $60,000 with any breakout above $49,000. When Bitcoin’s hegemony fades, Ethereum and other cryptocurrencies may experience a sharp increase in market value.

Currently, DeFi’s total volume is $4.5 billion, or 9.96% of the 24-hour volume of the entire cryptocurrency market. According to data accessible on CoinMarketCap, the overall amount of stablecoins is currently $40.32 billion, or 89.34% of the entire 24-hour volume of the cryptocurrency market.

The largest cryptocurrency in the world, Bitcoin, saw a spike in market capitalization to $943 billion in the past day. 52.5% of the market is presently made up of Bitcoin, according to CoinMarketCap. The volume of BTC rose 2.07% to $19 billion in the last day.

The price of bitcoin is currently at $42,585; it will probably rise above $49,000, with $47,680 acting as a critical support level. Technical indicators, with an RSI near 77, point to a bullish future.

Bitcoin saw a spike in take-profit and sell orders at the start of the week, which led to massive market liquidations after the cryptocurrency’s recent top at US$44,700. A tug-of-war between bulls and bears on the market resulted in sell-offs on Tuesday and Wednesday, which saw Bitcoin down below US$40,000 just days before the US interest rate announcement.

The Federal Reserve kept interest rates unchanged and made hints about potential rate reductions in the upcoming year, which caused Bitcoin to spike back up to US$43,000 on Thursday. The introduction of new accounting rules by the US Financial Accounting Standards Board (FASB) that require businesses including MicroStrategy, Tesla, and Block to evaluate their cryptocurrency holdings at fair value further boosted the market. These regulations, which go into effect in 2025, let companies keep an eye on changes in asset prices in real time.

As of right now, Bitcoin is levelling out at $42,000 USD, down 36% from its peak but still up an astounding 159% year to date. There is general optimistic attitude, with key resistance levels located at US$43,200 and US$43,500, and support around US$41,200. Ethereum exhibits comparable profit and loss patterns to Bitcoin. Even though Ethereum has dropped 52% from its peak, it has increased by 12% this month and 91% this year.

Significantly, El Salvador approved the first Bitcoin bonds in history, demonstrating how the world of digital money is changing. This action confirms El Salvador’s resolve to include Bitcoin into its financial system after it decided to accept the cryptocurrency as legal cash in September 2021. The issuance of Bitcoin bonds is an indication that the public is beginning to recognise cryptocurrencies as real financial assets. This development could draw funds from investors looking to diversify their holdings and profit from Bitcoin’s potential. Other countries may look into similar measures as the cryptocurrency sector develops, and the future of these financial instruments will be shaped by regulatory frameworks. Investors looking to get insight into the possible worldwide merger of traditional and digital finance should keep a careful eye on these trends.

Looking ahead, the April 2024 Bitcoin Halving is a big event planned for the following year. This every four-year occurrence, which controls the introduction of new Bitcoins by halving miners’ incentives, adds to the deflationary aspect of the cryptocurrency. A price spike prior to the event and in the months that follow appears to be preceded by the Bitcoin Halving, according to historical trends from 2012, 2020, and 2016.

In the coming year, the approval of spot Bitcoin Exchange-Traded Funds (ETFs) is another expected move. This regulatory achievement, which gives investors direct and controlled exposure to Bitcoin, might have significant effects on the cryptocurrency market. The financial landscape may change significantly if spot Bitcoin ETFs are approved, drawing in a wider spectrum of investors and advancing the adoption of cryptocurrencies by the general public.

Bitcoin maintained its run, fueled by hopes of new demand from exchange-traded funds, and reached its highest price since May of last year.

The largest digital asset gained as much as 11.5% to surpass $35,000 before trimming some of the gains to trade at $34,605 in New York at 8:11 a.m. (7:31 p.m. IST) on Tuesday, bringing its year-to-date recovery from 2022’s digital-asset slump to 108%.

The potential approval of the first US spot Bitcoin ETFs in the coming weeks is fueling speculation about the token. Asset managers BlackRock and Fidelity Investments are among those vying to provide such services. Bulls in digital assets say that ETFs will increase cryptocurrency usage.

On Monday, a US federal appeals court confirmed Grayscale Investments LLC’s victory over the US Securities and Exchange Commission’s objections to the creation of a spot Bitcoin ETF.

The SEC has so far refused to approve ETFs that invest directly in Bitcoin, citing dangers such as fraud and market manipulation. The court decision and a flood of applications from investing heavyweights to launch spot funds have fueled expectations that the agency may back down.

Coinbase Global Inc. and Bitcoin holder MicroStrategy are up 7.7% and 8.9%, respectively. Marathon Digital Holdings and Riot Platforms are up about 14% in the early session.

“We believe the crypto sector is approaching an inflection point that will result in increased volatility in crypto-linked stocks in any of our scenarios,” Needham analyst John Todaro wrote in a note.