Crypto Market Surges as Institutional Demand and Regulatory Developments Fuel Rally

The cryptocurrency market is experiencing a strong upward momentum, with Bitcoin surpassing $87,000 and Ethereum exceeding $2,800. According to OKX data, the price of BTC rose to $87,010, gaining 7.41% in the last 24 hours, while ETH reached $2,800.26, extending its daily gain to 5.98%. This surge is attributed to multiple factors, including renewed institutional demand and regulatory developments.

The inflow of capital into US spot Bitcoin ETFs has been significant, with net inflows of approximately $593 million over Thursday and Friday. This offset earlier outflows and increased expectations of continued institutional demand. Additionally, the SEC's grant of a five-year regulatory exemption to certain platforms for trading tokenized shares on the blockchain is seen as a step towards integrating blockchain-based financial products into traditional markets.

On the macroeconomic front, the recovery in risk appetite has also contributed to the rally. The fall in the US 10-year Treasury yield below 5%, the drop in oil prices, and the Nasdaq's rise to a record high have made it easier for investors to turn to riskier assets.