Crypto again attempts to break the downtrend

Crypto again attempts to break the downtrend

Market Overview

The crypto market cap has increased by nearly 4% over the past 24 hours, remaining near the high reached after Trump announced talks with Iran. This outperforms most related markets, where initial momentum has waned. Among the major coins, the relatively smaller Aptos (+15%), Filecoin (+10%), and Toncoin (+7.4%) are performing better than others. Monero (-2%) and Polkadot (+1%) are underperforming. Meanwhile, the crypto market has been trading around its 50-day moving average for the past 10 days, with a few attempts to move above it.

Bitcoin has risen by more than 4.5%, staying just below $71K. Although the leading cryptocurrency did not immediately capitalise on the upward momentum and extend its gains, simply remaining at these high levels now suggests confidence among the bulls. They are gradually developing a more optimistic outlook. However, it would be premature to declare the end of the downtrend until prices settle above $75K, where the March pivot points and the 61.8% Fibonacci retracement level from the January-February decline are concentrated.

News Background

According to CoinShares, global investment in crypto funds increased by $230 million last week, representing a fivefold decrease from the previous week. Investments in Bitcoin rose by $219 million, in Solana by $17 million, in Chainlink by $5 million, and in XRP by $3 million. Investments in Ethereum declined by $28 million.

Bitcoin can serve as a liquid asset and an ‘exit point’ for investors amid instability in global markets, notes the hedge fund Weiss Multi-Strategy Advisers.

The current decline in Bitcoin is connected to a four-year cycle and profit-taking by long-term holders. The bull run is expected to start in the fourth quarter of this year, according to Anthony Scaramucci, managing partner at SkyBridge Capital.

In mid-March, the average cost of mining a single Bitcoin increased to $88K, according to calculations by Checkonchain. At a market price of about $69K, miners are losing an average of roughly 21%.

Strategy bought an extra 1,031 BTC ($76 million) last week at an average price of $74,326 per coin. The company now owns 762,099 BTC at an average purchase price of $75,694 and aims to raise an additional $44 billion for further acquisitions.

Oil and silver have surpassed Solana and XRP in trading volumes on the decentralised Hyperliquid platform. This exchange is increasingly popular for trading commodity contracts, especially at weekends when traditional markets are closed.

By the FxPro Analyst Team