Investing.com | Editor Nikhilesh Pawar
Published Nov 20, 2023 09:57AM ET
The cryptocurrency market has seen a notable upswing, with Bitcoin breaking above the $37,000 mark and Ethereum surpassing $2,000 as of Friday. This surge is attributed to the growing anticipation of a potential U.S. Securities and Exchange Commission (SEC) approval for a Bitcoin exchange-traded fund (ETF), which investors believe could pave the way for greater accessibility to cryptocurrencies through traditional stock exchanges.
The rally in digital currencies comes against the backdrop of a broader recovery in the crypto market. Year-to-date figures highlight Bitcoin’s impressive climb of 124.8%, while Ethereum has gained 69.1%. Other cryptocurrencies such as Cardano and Dogecoin have also experienced significant growth, with increases of 59% and 15.1%, respectively. This rebound follows a period of volatility spurred by concerns over Federal Reserve rate hikes.
In recent months, the mood among crypto investors has improved due to signs of declining inflation rates, which may signal a nearing end to the Fed’s cycle of interest rate increases. This renewed optimism is reflected in the positive outlook for companies associated with cryptocurrency.
NVIDIA (NASDAQ:NVDA), known for its graphics processing units (GPUs), has forecasted a dramatic earnings jump of 226.1%, bolstered by strong demand for its products within crypto mining activities. Similarly, Interactive Brokers (NASDAQ:IBKR) Group Inc. (NASDAQ: IBKR) expects to see a growth of 41.7% thanks to its offering of crypto futures. Meanwhile, Coinbase (NASDAQ:COIN) Global Inc. (NASDAQ: COIN), which provides essential infrastructure within the crypto sector, is aiming for an increase in earnings of 91.7%.
The potential SEC approval for a Bitcoin ETF is seen as a significant step toward integrating cryptocurrencies into mainstream financial services, potentially attracting new investors and boosting overall market confidence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
