Market Overview
The crypto market capitalisation has risen by 2.3% over the past 24 hours to $2.19T. Still, we see the market’s ability to absorb the news of selling bitcoins from its reserves as the key development. The market began to recover from the initial dip fairly quickly, adopting a pragmatic stance regarding the scale of the sell-off. Although a test of the previous high is still to come, market capitalisation is approaching the 50-day moving average; a sustained move above this level would be an important confirmation of a reversal towards a bullish trend. Among the most active coins, the top gainers over the past 24 hours were Aptos (+6.1%), Internet Computer (+3.8%) and VeChain (+3.7%). Lagging were Stellar (-2.3%), Gram (-2.1%) and Hedera (-1.6%).
The sentiment index has risen to 27, emerging from the ‘extreme fear’ zone where it had remained for 40 days. That said, we once again advise waiting for a sustained move above the 50 level before concluding that the market has reversed. This is because such a move has not been achieved since last November.
Bitcoin climbed above $64.5K at the start of the day, posting a bold 5.5% rise following the initial reaction to reports that Strategy had sold $226 million worth of the leading cryptocurrency. However, this momentum was short-lived, and we saw a pullback to $63K. Should the uptrend continue, it is worth monitoring Bitcoin’s performance around the $66K mark. A sustained move above this level could be one of the first signs of a trend reversal. However, we cannot rule out an intensification of selling pressure, as seen mid-last month.
News Background
Last week, Strategy sold 3,588 (around $226 million) at an average price of around $60K per coin. Strategy’s reserves fell to 843,775 BTC, purchased at an average price of $74,476 per BTC. The proceeds were used to pay dividends on preference shares.
According to Visa, the monthly volume of transactions involving stablecoins rose to a record $1.79 trillion in June. The figure jumped by 63% compared with May and by 125% year-on-year. Circle’s accounted for the bulk of the volume in the first month of summer, making up around 67%.
Around one million people lost a total of $3.8 billion on investments in the US President’s TRUMP meme coin, according to Nansen’s calculations. In a recent financial disclosure, Trump reported receiving $636 million from the .
The FxPro Analyst Team