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The cryptocurrency market experienced less volatility in the last 24 hours, with a capitalization of $1.56 trillion and the price of Bitcoin hovering around $40,000. Major altcoins have also avoided strong moves. The fear and greed index hovers around a neutral level of 50.
A cautious bullish trend can be discerned in Bitcoin since Tuesday, as some players look to lock in profits from short positions or buy after a sharp sell-off. We note that Bitcoin was not oversold before stabilizing, and bears can take advantage of the current pause to accumulate liquidity before another sell-off.
Unlike Bitcoin, XRP has almost completely erased gains from the rally since October, returning to the $0.51 zone. On the daily charts, the RSI has touched oversold territory, setting the stage for further volatility and the possibility of a reversal in the coming days. However, there are reasons to be alarmed. Since November 2022, XRP has been forming an uptrend and the movement of the last few days has broken it.
News background
According to a Deutsche Bank survey, more than a third of respondents believe Bitcoin will fall below $20,000 by the end of the year. And only 15% of respondents expect to see BTC above $40,000 by then.
PlanB, the creator of the Stock-to-Flow model, on the other hand, believes that Bitcoin will consolidate around $40,000 and prepare for a rise to $60,000.
CoinShares noted the potential for higher inflows into Ethereum if the Dencun hardfork is successful and a spot ETF based on the asset is possibly approved.
Ethereum spot ETFs do not require a court process for approval, SEC Commissioner Hester Peirce said, referring to the court's decision to convert Grayscale Bitcoin Trust into a spot ETF.
The US FINRA found potential violations in 70% of informational materials on cryptocurrency products. Fair and balanced advertising rules explicitly prohibit "false, exaggerated, promising, unfounded or misleading statements."
Switzerland approved the first retail platform that will allow citizens to exchange tokenized securities and digital assets.
