Bitcoin surges by 3% to surpass the $65,000 mark, thanks to massive inflows in spot Bitcoin ETFs worth over $16 billion since launching in January, socio-political developments, and related market dynamics.
Meanwhile, other major altcoins like Ethereum, Ripple, and Solana benefited from BTC's price surge, with some experiencing double-digit price spikes.
Bitcoin Defies Multi-Billion Dollar Sell-offs
Bitcoin sells at $67,885 as at the time of writing, registering a price surge of over 3% over the last week. Market bulls are looking towards the $71,500 level as the world's largest cryptocurrency surpasses the $67,200 critical resistance level.
The bullish run has continued despite massive outflows from leading institutional investors. For instance, Mt Gox chose to move 91,755 BTC worth $5.8 billion, while the German government has similarly sold off large chunks of its BTC holdings. Meanwhile, other large sales have also occurred since the turn of the year. Surprisingly, Bitcoin remains strong, defying the multi-billion dollar sales.
Meanwhile, spot Bitcoin ETFs attracted inflows worth $300 million over the last week alone, adding to the tirade of large inflows via investor participation. The lifetime net inflows into these Bitcoin ETFs have surpassed $16 billion while showing no signs of receding anytime soon.
Interestingly, Bitcoin isn't alone in its bullish trajectory. The mammoth digital currency also positively impacts the price of other major altcoins.
Major Altcoins Benefit from BTC’s Rise
Leading altcoins have followed BTC's positive trajectory, directly benefiting from the improved investor confidence expressed in large buy-ins. Ethereum (ETH), Binance Coin (BNB), Tether, Ripple (XRP), Dogecoin (DOG), Cardano (CAD), TRON, Avalanche (AVA), and Shiba Inu (SHIB) have recorded tremendous gains over the last several weeks. Data reports up to 11% price gains for some of these assets over the period.
Altcoins like Ripple and Near Protocol are championing the wave of high-performing assets while boosting investor confidence in the industry. Both assets recorded over 35% price increase in recent months. Speaking about the most recent developments surrounding altcoins' advancements, Avinash Shekar, CEO, and Co-Founder at Pi42, credits a yearly crypto trend.
"Historically, July outperforms June for Bitcoin, and this year seems to follow suit despite recent challenges," the crypto exchange CEO remarked.
Why Bitcoin Surge Helps Altcoins
Bitcoin holds up to 50% of the entire crypto space by market capitalization, and it's no surprise that massive price shifts in the asset directly impact other major altcoins. There's the investor confidence that comes from observing a healthy flagship asset. But there's also a media boost that a positive BTC reputation gives to the entire industry.
For instance, investors may want to maximize bullish gains by diversifying into altcoins, expecting a similar boost. Meanwhile, analysts observed that regulatory positives for spot Bitcoin ETFs approving its launch amidst other recent crypto-related socio-political events forebode a brighter future for altcoins and other upcoming spot ETFs.
Conclusion
Bitcoin’s 3% price surge helps other major altcoins as it surpasses the $65,000 mark. Ethereum, Ripple, Tether, Cardano, and other significant altcoins boost prices by double digits. Experts point at the positive psychological effects of the BTC price spike, media boosts, and recent socio-political events as the brain behind the transmitted bullish trends.