Market situation
Last week, the crypto market was dominated by risk-off sentiment, with the market capitalization of cryptocurrencies falling from $2.4 trillion to $2.2 trillion. But prices recovered on Saturday due to increased volume, returning the market’s valuation to the $2.3 trillion it had been at the beginning of the week. The sentiment index was 72, having ranged from 69 to 74 for the past 12 days.
Bitcoin rose to $68,400, entering the range of the past six days. Last week, the market corrected its Oct. 10-20 rally, potentially paving the way for new upward momentum. The extended Fibonacci pattern suggests potential upside to $76,000, but the $70,000 and $72,000 areas could pose notable obstacles along the way.
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Flows into U.S. spot Bitcoin ETFs continued for the third straight week, albeit at a slower pace. According to SoSoValue data, inflows into the BTC ETF last week totaled $997.7 million, bringing the total since its January launch to $21.93 billion.
Ethereum ETFs have seen outflows again, totaling $24.5 million last week. Since the product launch, net outflows have increased to $504.4 million.
CoinDesk analyst Omkar Godbole points out that Deribit options indicate only a 10% chance of Bitcoin reaching $100,000. Most market participants expect BTC to trend towards the $80,000 level.
Bitcoin alone is still not enough to start the altcoin season. According to Hashkey Capital, altcoin season is when BTC crosses $80,000. Historically, altcoin gains have been associated with BTC’s market dominance index rising to levels in the 62-70% range.
According to the Wall Street Journal, US authorities are investigating USDT issuer Tether for allegedly violating sanctions and anti-money laundering rules. Tether CEO Paolo Ardoino denied knowledge of the investigation.
