The crypto market rebounded from the 200-day MA, confirming the bull trend

Market Overview

The crypto market cap grew by 3.9% over the past 24 hours to $3.77 trillion. The decline was interrupted in the middle of the day on Friday as it approached the 200-day moving average. At this important long-term trend line, cryptocurrencies saw an influx of buyers. This could be confirmation of the prevailing strategy of buying on dips, but it could also turn out to be a temporary reload for the bears. The latter scenario will be confirmed if the market fails to exceed $3.95 trillion, the area of recent highs.

The cryptocurrency sentiment index is at 29 (fear) for the last two days, with a dip into extreme fear on Friday and Saturday. According to the logic of the index creators, a dip into extreme fear is a good buying opportunity. So far, this logic has worked, but it would have been wrong in February, as the market was under pressure until April.

Bitcoin exceeded $111K, gaining ground after dipping below $103.3K on Friday. Bitcoin was bought back when it touched its own 200-day moving average. The positive momentum may signal a real recovery in risk appetite among investors, which has been a problem for the past two weeks.

News Background

The weekly inflow into spot Bitcoin ETFs in the US was interrupted after two weeks of inflows. According to SoSoValue, net outflows from spot BTC ETFs amounted to $1.23 billion last week, the highest since the end of February. Net outflows from spot ETH ETFs amounted to $311.8 million. Over the week, about 2% of total investments were withdrawn from funds for these coins.

The market continues to be influenced by two factors: geopolitical uncertainty and the continuing impact of tight monetary policy, ‘which has not yet changed course,’ Arctic Digital notes.

80% of companies focused on accumulating cryptocurrencies are currently trading below the net value of their crypto assets, said BitMine CEO Tom Lee. The market values such companies cheaper than the cryptocurrencies they hold.

The difficulty of mining Bitcoin fell last week for the first time since June. On October 16th, as a result of another recalculation, the indicator decreased by 2.73%. The network's hash rate, on the contrary, reached a historic high on the eve of the recalculation.

Ripple acquired GTreasury for $1 billion to integrate its blockchain infrastructure with corporate finance solutions. The acquisition of GTreasury will give the company access to a ‘multi-trillion-dollar market and customer base of major international corporations.

The FxPro Analyst Team