Market Overview
The crypto market capitalisation has reached $2.2T, rising again after a brief pause. This steady increase has formed a smooth upward trend since 8 July, which appears to be part of a broader rebound from the lows seen at the end of June. The top performers among the most actively traded coins over the past 24 hours were (+7.9%), (+6.8%) and (+6.7%). (-0.2%), and (both 0%) underperformed the market, though none saw any significant declines, indicating broad-based growth.
Bitcoin has returned to the intermediate local highs around $64K, with increased buyer interest during dips to $62K. And this resilience from the flagship cryptocurrency is quite positive news for the entire market. Admittedly, significant resistance still lies ahead, but it is quite possible that over the weekend, due to reduced market liquidity, levels above $66K may also give way, drawing in more active participation from risk-taking buyers in response to technical reversal signals.
Ethereum’s recovery stalled after reaching the 50-day moving average region near $1,800 at the start of the month. Resistance is further reinforced by the fact that the coin reversed around this level last month and, prior to that, in February, found support here. failed to quickly confirm a break of the downtrend following the rebound from June’s lows, as the previous support level has now become significant resistance. A sustained move above the 50-day moving average at $1,770 could signal a short-term bullish trend, whilst a firm rise above $1,800 would confirm it.
News Background
Bitcoin has been trading below its realised value of $76,600 for five months now. Such a prolonged period of undervaluation has occurred only a few times in history and has often preceded the formation of a long-term market bottom, according to Glassnode.
According to CryptoQuant, reserves on Binance have fallen by 21.6% over the past month, whilst abnormal one-day outflows have been recorded on the Ethereum network. Such a significant withdrawal of liquidity deprives the market of buying power and makes it more vulnerable to volatility.
Michael Selig, Chair of the US Commodity Futures Trading Commission (CFTC), has described Bitcoin as “one of the most anti-fragile assets”, having survived repeated market upheavals and tough measures by the authorities. In his view, should be regarded as a commodity, similar to gold, silver or oil. The CFTC Chair has called on Congress to expedite passage of the CLARITY Act.
Crypto custodian BitGo is set to launch quantum-resistant Bitcoin wallet tools for institutional clients in the coming weeks, including address risk assessment, automatic transfer of funds from vulnerable wallets and a new UTXO selection method.
Trading volume on the Robinhood Chain DEX reached a record $564 million a week after its launch, amid the hype surrounding meme coins. The layer-two (L2) network is built on Arbitrum and focuses on real-world assets (RWAs).
The FxPro Analyst Team