Why Bitcoin, Ethereum, and Cardano are rocketing higher today

Don't look now, but crypto investors are starting to get very bullish once again.

| More on:
A graphic of a pink rocket taking off above an increasing chart.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It's been another solid day in the crypto world, with headlines that the aggregate value of all cryptocurrencies has once again passed the $1 trillion threshold, bolstering investor confidence in this sector. 

This surge higher has been driven, in large part, by recent moves in Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Cardano (CRYPTO: ADA). As of 10:15 a.m. ET, these three top-10 tokens were up 4.1%, 9.1%, and 9.4%, respectively. 

While Bitcoin's solid momentum over the past week, fueled by what appears to be renewed bullish sentiment and strong demand for digital currencies, is garnering headlines, it's Ethereum's outsize moves higher that have grabbed most investors' attention. Last Thursday, Ethereum started rising on news that a tentative date of Sept. 19 has been set for "the merge," which will combine Ethereum's mainnet and Beacon Chain, creating a proof-of-stake blockchain. Since Thursday morning, Ethereum has surged more than 35% at the time of writing. 

Cardano appears to be benefiting from the enthusiasm around Ethereum's upcoming merge as the former prepares for its Vasil hard fork, which will bring a number of improvements to Cardano's blockchain. This hard fork had been delayed, similar to Ethereum's merge, which led to earlier concerns. However, with more optimism than pessimism today, investors appear to be taking a more positive stance on network upgrades to start the week.

So what

The upgrades underway for Ethereum and Cardano are a source of significant uncertainty for investors. There's always a chance something will go wrong, and value could be destroyed in the process of making improvements. With bearish sentiment prevailing lately, investors appear to increasingly be erring on the side of caution, waiting for concrete evidence everything will be OK before jumping in. 

While those on Ethereum's developer team, including Ethereum founder Tim Beiko (who initially put the Sep. 19 date out there), have made sure to refrain from providing a "hard" date, investors now have a rough timeline for this catalyst. Other positive factors, such as the narrowing of the spread between staked Ether and Ether, suggest investors are providing significant credence to the idea this merge will take place before the end of Q3.

Now what

The next few months are shaping up to be volatile ones for these top crytpo projects. These various upgrades, previously seen as both catalysts and potential sources of uncertainty, are once again being viewed with a positive lens. That means that, right now, Ethereum's merge and Cardano's Vasil hard fork are the bullish catalysts investors have been hoping for. 

That said, whether this momentum can be carried forward remains to be seen. This bear market is a doozy, and overall sentiment in the crypto sector continues to reflect extreme fear. Until that changes, it's going to be hard for such momentum-driven rallies to hold steady. Accordingly, investors may want to exhibit caution before adding aggressively to these top growth-oriented projects. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More on International Stock News

Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.
Economy

Up 20% this year. Does the S&P 500 Index have more in the tank for 2024?

Will US stocks hold up after the election?

Read more »

two young boys dressed in business suits and wearing spectacles look at each other in rapture with wide open mouths and holding large fans of banknotes with other banknotes, coins and a piggybank on the table in front of them and a bag of cash at the side.
International Stock News

2 magnificent S&P 500 dividend stocks down 27% to 51% to buy and hold forever

These stocks hold potential to act as growth and income plays.

Read more »

A young female investor with brown curly hair and wearing a yellow top and glasses sits at her desk using her calculator to work out how much her ASX dividend shares will pay this year
International Stock News

One Wall Street analyst thinks this emerging Artificial Intelligence stock could rise 60% in the next year

SoundHound AI is on the doorstep of a big year.

Read more »

man looks up at apple on his head
International Stock News

Why did Warren Buffett sell more Apple shares?

Does Buffett know something we don't?

Read more »

A male party goer sits wearing a party hat and with a party blower in his mouth amid a bunch of balloons with a sad, serious look on his face as though the party is over or a celebration has fallen flat.
International Stock News

What snapped the S&P 500 winning streak last night?

The S&P 500 almost made October a winner, but fell at the final hurdle.

Read more »

Man going down a red arrow, symbolising a sliding share price.
International Stock News

Why Nvidia stock is sinking today

Investors were spooked by economic data and the ambitions of a deep-pocketed rival.

Read more »

Rede arrow on a stock market chart going down.
International Stock News

Why Microsoft stock is sinking today

Microsoft just beat quarterly earnings estimates. So why is the stock falling?

Read more »

US economy and sharemarket with piggy bank
Share Market News

Here's why Goldman Sachs sees a decade of lower returns ahead for US shares

Aussie investors have placed a lot of faith in US shares this year.

Read more »