What happened
As of 10:45 a.m. ET today, top cryptocurrencies Bitcoin (BTC 0.54%), Ethereum (ETH 0.23%), and FTX Token (FTT) are on the move in a big way. These tokens have appreciated 4.6%, 4.9%, and 9.5%, respectively, over the past 24 hours.
Bitcoin has a number of catalysts investors are watching today -- namely, a report that this token's correlation to equities has reached its highest level since just prior to the onset of the pandemic is bullish, for those considering the price action in the stock market. Additionally, rumors that Terra could be a big buyer of Bitcoin over time, to boost the algorithmic stablecoin's reserves, is driving increased interest in this top token.
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Investors in Ethereum appear to remain very bullish around the infrastructure upgrade named "the merge," which will push this network to a fully proof-of-stake option. Early expert predictions are that staking rewards could be in the double-digit range, which has the potential to drive additional demand for Ethereum.
FTX Token's rapid rise over the past 24 hours appears to be the result of demand for the FTT token among investors. This top-25 cryptocurrency is now the second most in-demand token among top Ethereum wallet holders.
So what
Of course, the macro view that cryptocurrencies may continue to trade in higher correlation to other risk assets is something investors need to consider. Right now, equity markets are moving in the right direction. However, higher-volatility moves can work out poorly for investors in bear market scenarios.
That said, these token-specific catalysts are each a big deal for these top cryptos. Etheruem's update and Bitcoin's reserve status are key factors driving demand for these top two tokens by market capitalization. Today, it appears investors are focusing on tokens with the highest demand from institutional investors and whales, which brings FTX Token into the discussion.
Now what
Moving forward, it will be interesting to see how the crypto market continues to perform. Bitcoin, Ethereum, and FTX Token are each unique crypto offerings with their own sets of headwinds and catalysts. Right now, these tokens are moving the same direction, though a divergence could be possible should investors begin to take a more specific approach to investing in particular tokens in the crypto space.
