Bitcoin and Ethereum Reach 18-Month Highs Despite Fears of Market Instability

By: Isha Das

A renewed surge in Bitcoin and Ethereum has hit the crypto market, with Bitcoin smashing an 18-month record by crossing the $38,000 mark. Ethereum followed suit, pushing past $2,100, marking their highest levels since May 2022. This unexpected resurgence comes amid the U.S. Department of Justice's proposal of a $4.3 billion settlement with Binance, the world's largest crypto exchange. The settlement shocked experts, leading to the resignation of Changpeng Zhao, the CEO of Binance.

Many market experts predicted a bullish upswing, given the recent consolidation of Bitcoin prices, which seems to have materialized, disrupting traditional market activities. Market sentiments are being shaped by a FOMO (fear of missing out) scenario and traders are hoping that Bitcoin will reach the next major resistance level which is around $42,000 over the next few weeks. Some even taking to social media to express their positive outlook. Coupled with these developments, the possible U.S. approval of spot Bitcoin ETFs has further invigorated the market sentiment.

In a noteworthy development, the Bitcoin circulating supply in the profit region rose to a remarkable 84%, a significant increase over the 74% mean average. Alongside this upswing, the availability of profitable trading territories is increasing as Bitcoin continues to break new barriers. While this increase has led to a recent surge in market liquidations, this doesn't seem to have affected the overall bullish sentiment. It is important to note that investing in cryptocurrencies involves significant risk and should be approached with caution.