Market picture
Since Friday, the crypto market has been in a mood of easy greed, as evidenced by the corresponding index, which reached 55 on Monday, close to levels at the beginning of the month. Market capitalisation has also returned to $2.25 trillion, the highest since August 2nd.
A decisive breakthrough came on Friday when Fed Chairman Powell supported optimism in global financial markets, tipping the scales in favour of the bulls. The cryptocurrency market has managed to overcome the local resistance of the past few weeks and is likely to head towards the upper end of the range, now nearing $2.35 trillion.
Bitcoin broke above both its 50- and 200-day moving averages on Friday and briefly touched the $65,000 level on Saturday and Monday morning. The bulls will need to confirm this breakout by holding above $63.0K on Monday.
Toncoin is stabilising at nearly $5.66 after losing more than 15% on the news of Pavel Durov’s arrest. Technically, the coin is consolidating near its 200-day moving average, which is acting as local support. In our view, there is a high probability of a deeper dive to the $4.3 (200-week) or even $2.5 (April 2022-February 2024 resistance area).
News background
Data from CryptoQuant and major options exchange Deribit signalled moderate optimism in the crypto market. Bitcoin reserves on centralised exchanges fell to multi-year lows in August.
According to SoSoValue data, total weekly inflows into Bitcoin-ETFs totalled $506.4 million, the highest in 4 weeks. Cumulative inflows since the BTC-ETF was approved in January rose to $17.88bn.
In contrast, the Ethereum-ETF has seen a negative trend, with outflows of $44.5 million for the week after outflows of $14.2 million previously. Net outflows since product approval have risen to $464.7 million.
According to Spot On Chain, the non-profit Ethereum Foundation moved 35,000 ETH ($94 million) to cryptocurrency exchange Kraken, the largest Ethereum Foundation transaction this year.
Ethereum’s Dencun update, activated in March, has led to an increase in bots’ activity and failed transactions on Layer 2 networks, according to Galaxy Digital.
Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.
Recommended Content
Editors’ Picks
Ethereum bulls could stage 30% rally following Fed Chair's keynote, withdrawing over 284K ETH from exchanges
![Ethereum bulls could stage 30% rally following Fed Chair's keynote, withdrawing over 284K ETH from exchanges](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum is up over 6% on Friday as bulls have initiated heavy buying pressure following indications from US Federal Reserve (Fed) Chair Jerome Powell that an interest rate cut is imminent.
SUI, OP, ZETA lead $160 million crypto token unlocks next week
![SUI, OP, ZETA lead $160 million crypto token unlocks next week](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Sui/sui-sui-logo_XtraSmall.png)
The crypto market will witness another round of heavy token unlocks next week, with $164.2 million of cliff unlocks entering into the circulating supply of several top altcoins, per crypto intelligence firm Token Unlocks.
XRP trades above $0.60, Ripple whales shed token holdings
![XRP trades above $0.60, Ripple whales shed token holdings](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptocurrenciesusd_XtraSmall.jpg)
Ripple whales holding between 1 million and 10 million XRP tokens slightly decreased their holdings between August 22 and 23. XRP retail traders holding less than 1,000 tokens accumulated the asset, while whales dropped their assets.
Here's why Bitcoin and the crypto market rallied after Fed Chair's speech
![Here's why Bitcoin and the crypto market rallied after Fed Chair's speech](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoins-33758372_XtraSmall.jpg)
Bitcoin has gained nearly 5% alongside a rally across the crypto market in the past 24 hours following indications of interest rate cut from Fed Chair Jerome Powell's keynote on Friday morning.
Bitcoin: Can BTC break above $62,000 barrier?
![Bitcoin: Can BTC break above $62,000 barrier?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin (BTC) trades above $60,000 on Friday, gaining more than 4% this week so far, but fluctuating within a range between $57,000 and $62,000 for the last 15 days. On-chain data shows contradicting signs, with institutions accumulating Bitcoin while some whales are selling. Additionally, the US spot Bitcoin ETFs recorded inflows this week, and continued Mt.Gox fund movements could bring volatility in Bitcoin's price in the coming days.
Moneta Markets review 2024: All you need to know
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.