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The cryptocurrency market capitalization increased by 1.5% in the last 24 hours to reach $1.091 trillion. Yesterday, the market briefly rose on the false news of the approval of the Bitcoin spot ETF. But interestingly, the subsequent market tide did not derail the short-term bullish trend. That said, we continue to see continued high trading volumes. We consider this to be good news, given that the price is not high compared to historical standards. This is an influx of new buyers rather than an active exit from the market.
That said, buyer interest is concentrated in Bitcoin, whose share in the total capitalization is adding territory above 50%. These are highs since April 2021. This is likely due to the special status of the first cryptocurrency that the SEC is willing to recognize as a commodity, without recognizing the rest of the cryptocurrencies as commodities. But it is also possible that the remaining coins are under pressure due to reduced developer activity as financing has become more complex.
Bitcoin bounced towards $30,000 on Monday, from $27,200. Although we saw a significant setback, the Bears were defeated. BTCUSD closed Monday trading above the 200-day average, with the intraday trend gaining momentum. Current positions near $28,500 indicate bullish dominance and confirm the existence of an ascending channel since early September with a sequence of more than three highs and lows. The market could quickly move towards the $29,400 level, recovering from the mid-August sell-off.
News background
According to CoinShares, investments in crypto funds increased by $15 million last week; The inflow of funds continues for the third week. Investments in Bitcoin increased by $16 million, while investments in Ethereum decreased by $7 million. Investments in funds that allow short bitcoin positions increased by $1.7 million. Investments in Solana increased by $3.7 million, again significantly outperforming all altcoins.
Grayscale Investments bitcoin trust (GBTC) discount to net asset value (NAV) narrowed to its lowest level since December 2021, at 15.9%. The SEC will not appeal Grayscale's lawsuit, potentially paving the way for spot ETFs to be approved in the country, CoinShares noted.
Ethereum miners (over 1,000 ETH) have reduced their positions by 12 million ETH since the beginning of the year, while bitcoin miners (over 1,000 BTC) have accumulated coins, Cryptoslate noted. Since 2020, large investors have emptied their wallets by 20 million ETH. Swan has encountered many clients who want to exchange Ethereum for Bitcoin.
US authorities have joined the ranks of the largest Bitcoin holders. Thanks to several major asset seizures related to the Bitfinex hack and the Silk Road platform, around 200,000 BTC have been deposited into US federal accounts.
