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Crypto: Selling on Growth Continues

By:
Alexander Kuptsikevich
Published: Sep 11, 2024, 08:21 GMT+00:00

Interestingly, the introduction of ETFs has not yet had a positive impact on momentum.

Crypto: Selling on Growth Continues

In this article:

Bitcoin Struggles Below $58K: Profit-Taking Halts Momentum Despite Institutional Interest

The cryptocurrency market lost 0.5% in the last 24 hours, falling to $1.99 trillion. As expected, the market failed to consolidate above the $2 trillion level due to the indecisiveness of major players ahead of the US inflation data. Selling has been prevalent since the start of the day, confirming the tactic of quick profit-taking.

Bitcoin is trading around $56.5K, having failed to break through the $58K mark twice since the start of the day on Tuesday. Bitcoin is densely populated by institutional investors, for whom macroeconomics and sentiment in traditional financial markets are the main short-term drivers.

Interestingly, the introduction of ETFs has not yet had a positive impact on momentum. BTCUSD has been in a downtrend since March, while ETHUSD has been actively sold since the end of May. This is more a result of profit-taking by long-term investors after reaching an important milestone in the global adoption of cryptocurrencies rather than a negative effect of the presence of funds and corporates among the buyers. This process will not crash the market, but it has already broken the trend of 4-year cycles of strong growth during bitcoin’s halving years.

Crypto News

According to QCP Capital, implied volatility in bitcoin options remains elevated due to the Trump-Harris debate and US consumer inflation data. Options market participants tend to be predominantly bearish into October.

Since August, USDT volume on cryptocurrency exchanges has been growing rapidly, which could potentially boost cryptocurrency prices, CryptoQuant noted. Previously, from March to July, the dynamics did not show significant fluctuations in turbulence.

According to journalist Colin Wu, total trading volume on the largest centralised exchanges increased by 30% in August. Turnover on the largest cryptocurrency platforms increased by 32%.

SEC recoveries in cryptocurrency-related enforcement actions increased 30-fold to a record $4.7 billion in FY2014, largely due to a $4.47 billion settlement with Terraform Labs.

Japan-based Metaplanet announced the purchase of an additional 38,464 BTC ($2 million) at an average price of $54.786. Metaplanet’s reserves approached 400 BTC, with an average coin purchase price of around $66,000 over the period.

DOGS held the largest Meme Token Issue and Distribution (TGE) in the history of the crypto industry, leading to a surge in activity on the TON network. The DOGS meme token has 4.5 million unique holders.

Total commissions on the Solana network fell to a six-month low due to Pump. fun’s declining popularity.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

About the Author

Alexander is engaged in the analysis of the currency market, the world economy, gold and oil for more than 10 years. He gives commentaries to leading socio-political and economic magazines, gives interviews for radio and television, and publishes his own researches.

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