As of Saturday, October 12, the total cryptocurrency market capitalization has surged by 2% over the past 24 hours, reaching approximately $2.28 trillion during the early European session. This uptick follows Bitcoin’s (BTC) impressive price movement, which rose to a range high of about $63,361 on Friday during the mid-New York trading session.
The recent rebound in the crypto market did not lead to significant liquidations, indicating a stable recovery. Many traders are bracing for heightened volatility over the weekend, especially after Bitcoin traded below the $59k mark for the first time in three weeks.
1. Re-emergence of Whale Demand
After a few days of downturn, U.S. spot Bitcoin ETFs saw a robust net cash inflow exceeding $348 million on Friday. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) registered the highest inflow, totaling approximately $140.7 million, while Fidelity’s FBTC brought in around $117 million.
In contrast, the spot Ether ETFs recorded a modest net cash inflow of about $2 million. This renewed interest has led to a reduction in the net supply of Bitcoin on crypto exchanges, declining by roughly 10,000 BTC in the past week, with Ether’s supply decreasing by around 24,600 ETH over the last 24 hours.
2. Favorable Technical Indicators
Popular crypto analyst Benjamin Cowen highlights that Bitcoin has reclaimed critical support levels following its recent bounce. From a technical perspective, Bitcoin is forming a fractal pattern reminiscent of last year’s bullish breakout in the second half. A consistent rally above $66k could trigger a wave of FOMO (fear of missing out) among traders, propelling Bitcoin towards its all-time high.Such momentum would likely impact the entire altcoin sector, potentially igniting a broader crypto rally in the months ahead.
Following the rebound from below $59k to over $63k, concerns about further crypto capitulation have diminished. Bitcoin’s Fear and Greed Index has shifted from 32%—indicating market fear—to 49%, reflecting a neutral sentiment among traders in just 24 hours.
The bullish narrative for October is gaining traction, with expectations that Bitcoin will continue its upward trajectory. Additionally, with the U.S. general elections approaching in about three weeks, historical trends suggest that this period often triggers bullish sentiment in the market.
Moreover, gold and major stock indexes have recently shown bullish breakouts, further supporting a positive outlook for the crypto landscape.
As the market evolves, all eyes will be on Bitcoin and altcoins to see if this momentum can be sustained.
October 2024, Cryptoniteuae