Bitcoin’s recent surge can be attributed to the anticipated approval of US spot exchange-traded funds (ETFs) that directly invest in the cryptocurrency. This boost in confidence is not limited to Bitcoin alone, as the decentralized finance (DeFi) sector has also witnessed a significant rise. Aave, a prominent DeFi lender, has recorded borrowing rates exceeding 10%, indicating a growing interest in the sector.
In other news, XRP, the digital asset associated with Ripple Labs Inc., has seen a notable 14% gain. This surge can be attributed to Ripple’s recent partial legal victory over the US Securities and Exchange Commission (SEC) regarding its regulatory status. Analysts at ByteTree suggest that traders are responding positively to these developments, which have brought some clarity to Ripple’s future.
While Bitcoin has yet to reach its 2021 record high of $69,000, it has been witnessing consistent new buying activity. This suggests a shift in investor sentiment, with more individuals entering the market and expressing confidence in the long-term potential of Bitcoin.
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