Crypto Market Analysis
Over the past week, the crypto market’s market capitalization has fallen by more than 6%. At the opening of European trading on Monday, the total value of assets stood at $2.46 trillion. Prices are currently testing the 200-day moving average, which has become an important threshold for sellers. The main question is whether buyers will be willing to step back into the market. This uncertainty is currently characteristic not only of cryptocurrencies but also of the largest U.S. tech companies. Market participants are simply waiting for external stimuli, particularly from government agencies. A downward trend prevails among the most volatile assets, and the ratio of rising coins to falling ones is approximately 1 to 7. Over the past 24 hours, Basic Attention Token (+2.6%), Immutable (+1.8%), and Dash (+0.5%) have performed the best. Meanwhile, XRP (-5.7%), Algorand (-5.3%), and Ethereum (-5.1%) continue to fall.
The price of Bitcoin is hovering around $74,000. On Sunday, the asset dropped noticeably to $73,500, and the sharp subsequent jump to $75,700 failed to hold. Although Bitcoin managed to recover from its drop below the 200-day moving average, this move appears to be primarily technical. The main influx of funds is usually expected closer to the opening of the U.S. trading session. It is at this time that the main battle to preserve the long-term trend will begin. The outcome of this confrontation—whether an upward rebound or a downward breakout—will determine the market’s direction for the coming days or even weeks, so it’s worth keeping a close eye on this.
News Agenda
According to SoSoValue, funds have been flowing out of U.S. spot Bitcoin ETFs for four out of the past five weeks. Over the past week, the volume of funds withdrawn reached $1.28 billion. This is the largest weekly outflow since late June, and it is twice the total for the entire month of October.
The situation with Ethereum ETFs is even more serious: funds have been flowing out of them for six consecutive weeks, with weekly outflows totaling $365.3 million.
Amid the Nasdaq’s decline, U.S. spot Bitcoin ETFs recorded their largest outflow in the past four months. Peter Schiff of Euro Pacific Capital, who has always been skeptical of cryptocurrencies, suggested that once the artificial intelligence bubble bursts, Bitcoin could be next in line to take a hit.
An analyst at BaykusCharts notes that retail investors have shown little interest in spot markets for the past two and a half years. Due to this lack of activity, traders have lost a familiar indicator that previously helped identify local market highs and lows.
Meanwhile, Chinese regulators have launched an investigation into individuals and organizations associated with the Solana ecosystem in China. The central bank explained that any cryptocurrency transactions within the country are considered illegal financial activities.
According to Reuters, following the Democrats’ victory in the midterm elections, Senator Elizabeth Warren, a frequent critic of the crypto sector, may head the U.S. Senate Banking Committee. If appointed, she will be granted significant investigative powers and will be able to summon industry representatives to official hearings.