Crypto market drifts lower with a market cap of $2.67T. Bitcoin is below $80.0K, with a pullback to $75K likely. Bitcoin ETF inflows resumed, but sentiment is cooling.
Market Overview
The crypto market capitalisation is creeping downward, as caution becomes increasingly evident amid a lack of a turnaround in equities. At $2.67T, the market is 3.3% below its level of 7 days ago and 0.8% lower than 1 day ago. Technical indicators suggest the downtrend is set to continue, as the market sinks further below its 50-day moving average and the resistance zones from May and September have failed to act as support. The decline, while steep, is broad-based, with the ratio of rising to falling coins at approximately 1:7. Among the best performers are Uniswap (+2.5%), Cosmos (+0.8%) and Bitcoin Cash (+0.5%). The three worst performers are Basic Attention Token (−7.8%), VeChain (−3.9%) and Tezos (−3%).
Fig. 1. The crypto market is sinking deeper below its 50-day MA.
Bitcoin fell below $79.5K on Saturday and touched that level again on Monday morning. Downward momentum is currently being met by buyers, holding back the overall downward trend, but on balance, we are seeing a downward drift. Although the price has fallen below a significant round figure, the market has not yet encountered a significant volume of stop orders, thus avoiding sharp movements. With Bitcoin falling for the fourth week in a row, the most widely discussed scenario currently appears to be a pullback to $75K, where the 50-week moving average and the support zone for September's corrective move are concentrated.
Fig. 2. Bitcoin is creeping downwards, at risk of failing to find significant support until it reaches $75K.
News Background
Inflows into US spot Bitcoin ETFs resumed after two weeks of outflows, totalling $304.7 million for the week. Outflows from US spot Ethereum ETFs have continued for four consecutive weeks, but have slowed to $220.6 million for the week.
Sentiment towards Bitcoin is cooling. The market's overheating has subsided without a major sell-off, creating a healthier foundation for further development, notes analyst Axel Adler Jr.
According to BlocksBridge Consulting, Bitcoin's seven-day average hash rate has exceeded 1 ZH/s (1,000 EH/s) for the first time since early March. The recovery in the hash rate is an indirect bullish signal for BTC, according to CryptoQuant CEO Ki Young Ju.
JPMorgan has warned of risks to the crypto industry if the CLARITY Act is not passed. Alternative regulatory solutions may attract institutional participants in the near term, but will not provide certainty for the future.
Ethereum developers have postponed the activation of the Glamsterdam update on the Hoodi testnet to further investigate how EIP-8037 interacts with existing smart contracts. The hard fork was originally scheduled for 26 October. A new date has not yet been set.
According to Santiment, the number of wallets holding XRP with a non-zero balance has reached a new all-time high of 8.24 million.
The FxPro Analyst Team