Bulls quickly returned to crypto
|Market picture
The second half of Monday proved to be for the bulls in cryptocurrencies, triggering a 3.5% rise in capitalisation over the last 24 hours to $1.61 trillion. Daily updates of all-time highs in US stock indices support the appetite for crypto. The Nasdaq100, which has previously had a pronounced impact on the cryptocurrency market, did so yesterday.
Bitcoin is trading just below $43K, and as of this morning, in a thinly liquid market, it was rising at a peak of $43.4K, an eight-day high. Bitcoin has formed a double bottom on the intraday charts, and this dynamic indicates that the mood for a deeper correction has not materialised. On the other hand, Tuesday's peak is close to last Thursday's, leaving Bitcoin inside the range.
According to CoinShares, investments in crypto funds fell by $16 million last week for the first time after 11 weeks of inflows. Bitcoin investments were down $33 million, Ethereum was down $4 million, and Solana was up $11 million.
The slight outflow was more profit-taking than a change in sentiment, CoinShares said. Altcoins bucked the trend with inflows of $21 million, with Solana, Cardano ($3 million), XRP ($2.7 million) and Chainlink ($2 million) being the main beneficiaries. Trading activity remained well above the yearly average, totalling $3.6bn for the week.
News background
Average fees on the Bitcoin network topped $37, hitting a yearly high. The growth was fuelled by another wave of activity in the Ordinals segment, which increased demand for space in the blockchain.
Cryptocurrency attorney and Crypto-Law founder John Deaton said that 20 per cent of US Senate members agree to support a ban on cryptocurrencies in the country. In his opinion, cryptocurrency opponent Senator Elizabeth Warren is the biggest threat to freedom in the US.
The issuer of the largest stablecoin USDT, Tether, has confirmed its course of cooperation with the US authorities. The firm said it is committed to fighting the illegal use of USDT.
Speculators have started reselling Solana's Saga smartphones on eBay at prices above $2000 due to the hype surrounding the BONK meme-token Airdrop. Buyers of Saga phones get a guaranteed giveaway of 30 million BONK, worth more than the original price of the smartphone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.