Market situation
The virtual currency market corrected by 0.5% from the previous day to a level of $2.22 trillion, continuing to settle at high prices close to last month’s peak. As expected, cryptocurrency sales intensified around the previous peak. The crypto market needs to rise nearly 3% more to validate a break from the months-long downward trend.
Bitcoin’s previous four daily candlesticks and today’s candlestick show relatively impressive intraday fluctuations and a very benign end-of-day trend. The battle over the 200-day moving average continues. In this case, the former cryptocurrency is rising more cautiously than the stock market.
Litecoin last week overcame the resistance of the descending channel it has been trading in since May. However, the sell-off intensified as it approached horizontal resistance just above $67, marking the fourth decline in the past five weeks. If risk appetite recovers in global markets, the price will rise to $74 (+12%), confirming a break from the downtrend. If the decline intensifies, the price will look for support at $60 (-10%) as soon as possible.
news background
According to CoinShares, investments in cryptocurrency funds increased by $321 million last week, following inflows of $436 million the previous week. Investments in Bitcoin increased by $284 million and Solana by $3 million. Ethereum fell by $29 million. Investments in funds with multiple crypto assets increased by $54 million.
Last week’s inflows were likely due to the US Federal Reserve’s decision to cut interest rates by 50 basis points (bp) in one fell swoop. As a result, total assets under management (AUM) increased 9% to $9.5 billion. Ethereum continues to be an exception, with outflows for five consecutive weeks. CoinShares noted that this was due to sustained outflows from Grayscale Trust and modest inflows to the recently launched Ethereum ETF.
BlackRock CEO Larry Fink said Bitcoin is a legitimate financial product that can diversify risk. In his view, markets are a way for “people to invest as soon as they get scared of the market.”
The average transaction fee on the Ethereum network rose to $3.98, almost five times as much as $0.85 in early September. Uniswap tops the list of most gas-consuming apps.
