"Do investors think this rise in crypto is only temporary or not?"
As investor demand has picked up lately, the amount of Bitcoin (BTC) held by Exchange Traded Funds (ETPs) is increasing after a sharp plunge below 688,000 BTC in early March.
Even so, the ETP that added 4,000 BTC on April 2 has been the reason its total holdings are over 692,000 of those digital assets worth $20 billion.
According to CryptoQuant Grizzly analysts, investors are starting to increase their BTC holdings as the United States Federal Reserve (Fed) may stop raising interest rates.
Although Fed Chairman Jerome Powell did not make any statement, 58% of traders are confident that the Fed will not raise interest rates at the next Federal Open Market Committee (FOMC) meeting in May.
The streak, BTC price currently managed to jump by 3.01% reaching the level of $28,566 in the last 24 hours with a market capitalization of $553 billion and increased by around 4.98% over the last week.
Among other reasons that may push the digital asset to rise is due to the encouraging employment report, where the US economy tends to contract.
While most cryptocurrencies such as Ethereum (ETH) also saw a positive movement when it gained more than 5.74% past the level of $1,908 in the last 24 hours with a market capital of $230 billion and a jump of 7.19% in the last 7 days.
In the meantime, some investors are more comfortable using a wait-and-see approach than acting hastily in making a digital asset investment, commented James Butterfill, head of research at European digital asset manager Coinshares.
