This excerpt that I posted from Yahoo Finance discusses the current state of the cryptocurrency market as of February 20, 2024. It is a great article that i belive will be very helpful in the long run. It notes a resurgence in cryptocurrency prices, particularly for Bitcoin (BTC) and Ethereum (ETH), reaching levels not seen since the 2021 market upswing. Unlike the exuberant atmosphere during the pandemic-era bull market, the recent market uptrend is described as quieter, with increased retail interest observed anecdotally.
The author points out various indicators signaling a crypto market rebound, including rising MetaMask monthly active users, Coinbase’s return to profitability, increased bitcoin search interest, and the successful launch of several spot bitcoin exchange-traded funds (ETFs). Legal concerns surrounding the crypto industry also seem to be easing, with resolved cases and governments, including the U.S. and EU, showing a willingness to work with the industry to develop consumer-protective policies.
While acknowledging the unpredictability of the crypto market, the author suggests a growing sense that crypto is on the verge of a positive turn. The piece emphasizes the opportunity for the industry to move beyond past issues like celebrity endorsements, financial speculation, and fraud, focusing instead on building something more substantial and enduring.
Is crypto back? It seems that every other week there is a headline saying bitcoin {{BTC}} and ether {{ETH}} are trading hands at prices not seen since 2021, when the crypto market was in an upswing. It’s not obvious that the price appreciation is going to stop anytime soon; things feel different this time around.
This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here.
The pandemic-era bull market was a period of mass exuberance, hysteria and fun. Everyone from Elon Musk to my mom seemed to be talking about crypto. Celebrities were endorsing meme coins and buying NFTs. Crypto became a cultural touchstone: perhaps the best signifier of an economy going through wild gyrations as the post-pandemic world began to reopen, a weird time dominated by “vibes.”
In comparison, the latest market upswing has been quiet. Sure, a few friends have reached out to see if they should buy bitcoin — an anecdotal indicator suggesting increased retail interest. But, by and large, it seems very people have taken notice as crypto prices have ticked up.
See also: Bad Vibes from the Word ‘Crypto’ Have Some Calling for a Rebrand
Of course, following the wave of protocol failures and corporate bankruptcies in 2022, starting with the high profile implosion of Terra and culminating in the collapse of FTX, crypto has become toxic to talk about. The same level of enthusiasm and lightheartedness is hard to regain while still living through the hangover.
There are a number of indicators besides price action that suggest the crypto market rebound has begun in full force. MetaMask, the primary means of accessing the Ethereum network, is nearing an all-time high of monthly active users (30 million); Coinbase, the largest U.S. crypto exchange, posted its first profitable quarter in two years as trading volumes bounce back; and bitcoin search interest is bouncing back (a little), according to Google Trends.
A number of factors could be contributing to rising interest. The bitcoin halving, an event that occurs roughly every four years, is always a popular media topic. Meme coins and token airdrops feed the idea that the crypto industry prints people free money. Endorsements from figures like BlackRock CEO Larry Fink and even government bodies, in places like Hong Kong and the United Arab Emirates, foster a sense that crypto is technologically significant.
Most notably, the launch of nearly a dozen spot bitcoin exchange-traded funds (ETFs) has gone better than expected, with BlackRock’s ETF already posting the fifth-largest inflows this year and billions of capital flowing into the crypto funds.
Moreover, there is a growing sense that the worst may be over for crypto, legally-speaking. Large overhanging concerns have more or less wrapped up, often in crypto’s favor. The Department of Justice settled with Binance, imposing a strict financial penalty, but one the world’s largest exchange appears able to carry. The U.S. Securities Exchange Commission’s hostile attempt to “regulate through enforcement” was dinged after Ripple won a significant legal battle in court, and as the agency faces other uphill battles in court. And the FTX bankruptcy process is winding down, with full restitution expected for all former users.
