The crypto markets have experienced a surge in the value of significant digital assets in a busy week that saw promoting the data of inflation and the awaited Ethereum Shanghai advancement. Ether and Bitcoin have risen by approximately 11% and 9% in the last 7 days, with most of the profits occurring in the last few days.
This results from recent economic reports showing that inflation was more down than expected while jobless shares were higher than anticipated. This may lead the Fed to justify not increasing interest rates at the Federal Open Market Committee (FOMC) meeting in May, media reports said.
One of the biggest pieces of news from the crypto markets this week was the fulfillment of the Ethereum Shanghai upgrade, which allowed ETH investors to withdraw their stakes. Ether has reacted positively to the upgrade, increasing in price by about 9% since its completion. This positive response is despite the potential unlocking of 18.2 million ETH, which many investors feared would lead to selling pressure on the asset. The de-risking of ETH staking has been viewed positively by the market.
As Ethereum’s price experienced a significant upswing, it started to make inroads into Bitcoin’s authority by market capitalization. The trading volume in the crypto market also increased, with Ethereum’s daily volume skyrocketing to more than double its 20-day MA (moving average) on Thursday. Bitcoin’s volume exceeded the 20-day moving average every day this week, except for Thursday.
This week, Bitcoin and Ethereum broke through the upper ridge of their Bollinger Bands, indicating a surge in bullish sentiment. Some alternative coins, or altcoins, also saw a considerable increase in value this week. The past week has seen a surge in the prices of several altcoins. ARB, the indigenous token for Ethereum’s layer 2 Arbitrum system, emerged as the top performer, with an impressive 28% increase. Immutable X’s IMX and Solana (SOL) also had a strong showing, rising by 17% and 20% respectively.
The surge in the crypto market comes after several weeks of volatility, which saw the value of digital assets plummeting due to regulatory concerns and environmental issues. However, the market’s recent response to the Ethereum Shanghai upgrade and the encouraging economic reports has shown investors’ confidence in crypto markets is gradually returning.
