Bulls quickly returned to crypto

Market Picture

The second half of Monday proved to be for the bulls in cryptocurrencies, triggering a 3.5% rise in capitalisation over the last 24 hours to $1.61 trillion. Daily updates of all-time highs in US stock indices support the appetite for crypto. The Nasdaq100, which has previously had a pronounced impact on the cryptocurrency market, did so yesterday.

Bitcoin is trading just below $43K, and as of this morning, in a thinly liquid market, it was rising at a peak of $43.4K, an eight-day high. Bitcoin has formed a double bottom on the intraday charts, and this dynamic indicates that the mood for a deeper correction has not materialised. On the other hand, Tuesday's peak is close to last Thursday's, leaving Bitcoin inside the range.

According to CoinShares, investments in crypto funds fell by $16 million last week for the first time after 11 weeks of inflows. Bitcoin investments were down $33 million, Ethereum was down $4 million, and Solana was up $11 million.

The slight outflow was more profit-taking than a change in sentiment, CoinShares said. Altcoins bucked the trend with inflows of $21 million, with Solana, Cardano ($3 million), XRP ($2.7 million) and Chainlink ($2 million) being the main beneficiaries. Trading activity remained well above the yearly average, totalling $3.6bn for the week.

News Background

Average fees on the Bitcoin network topped $37, hitting a yearly high. The growth was fuelled by another wave of activity in the Ordinals segment, which increased demand for space in the blockchain.

Cryptocurrency attorney and Crypto-Law founder John Deaton said that 20 per cent of US Senate members agree to support a ban on cryptocurrencies in the country. In his opinion, cryptocurrency opponent Senator Elizabeth Warren is the biggest threat to freedom in the US.

The issuer of the largest stablecoin USDT, Tether, has confirmed its course of cooperation with the US authorities. The firm said it is committed to fighting the illegal use of USDT.

Speculators have started reselling Solana's Saga smartphones on eBay at prices above $2000 due to the hype surrounding the BONK meme-token Airdrop. Buyers of Saga phones get a guaranteed giveaway of 30 million BONK, worth more than the original price of the smartphone.

By the FxPro Analyst Team